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					Economic Impact Study
A Study of the Economic Impact of
The University of Texas System




                                    Institute for       Economic Development

                                                    The University of Texas at San Antonio
A Study of the Economic Impact of   Page 2
The University of Texas System
Table of Contents




Introduction                                                     4    Conclusion                                                        29
                                                                      UT System Benefits to Texas
Current Findings                                                 6    Leverage of the State’s Direct Investment

The University of Texas System                                        Leverage Through Multipliers of Resources in Regional Economies

Aggregate Impacts                                                     Leverage Through Multipliers of Jobs in Regional Economies

Operational Expenditures                                              Leverage Through Export Sales to External Customers

Capital Expenditures                                                  Leverage Through Future Productivity Gains of Graduates

Faculty/Staff Spending
Student Expenditures                                                  Scope and Limitations/
Health Centers’ Impacts                                               Future Study Topics                                               33

Economic Impacts by Region                                       15   Appendix 1                                                        34
Arlington-Fort Worth                                                  Methodology
The University of Texas at Arlington                                  Educational Institutions

Austin-Round Rock                                                     Operational Expenditures

The University of Texas at Austin                                     Capital Expenditures

Brownsville-Harlingen-San Benito                                      Faculty and Staff Spending

The University of Texas at Brownsville/Texas Southmost College        Student Expenditures

Dallas-Plano-Irving
The University of Texas at Dallas                                     Appendix 2                                                        36
The University of Texas Southwestern Medical Center at Dallas         Educational Attainment and
El Paso                                                               Work-Life Earnings
The University of Texas at El Paso                                    Assumptions and Limitations
Houston-Galveston
The University of Texas Medical Branch at Galveston                   Appendix 3                                                        37
The University of Texas Health Science Center at Houston              Regions Used in Study
The University of Texas M. D. Anderson Cancer Center
McAllen-Edinburg-Pharr
The University of Texas - Pan American                                Appendix 4                                                        38
Midland-Odessa                                                        Total Economic Impacts of UT System
The University of Texas of the Permian Basin                          Institutions on Regional Economies
San Antonio
The University of Texas at San Antonio
The University of Texas Health Science Center at San Antonio
                                                                      Acknowledgments                                                   42
Tyler-Longview-Marshall
The University of Texas at Tyler
The University of Texas Health Center at Tyler




A Study of the Economic Impact of                                                                                                   Page 3
The University of Texas System
Introduction
UT System Strengthens the Texas Economy of Today and Tomorrow



The State of Texas invests in higher education in order to                                                               Regions receive multiple benefits, including short-run
develop the human capital of the state. These investments                                                                economic benefits, on a yearly basis from having a
result in long-term economic benefits including: productivity                                                            university in their back yard. Universities purchase goods
and earnings gains of an educated workforce, new knowledge                                                               and services from businesses, who in turn, employ more
creation, market entry of products and services as a by-                                                                 citizens and purchase goods and services from other local
product of research and development, a supply of skilled                                                                 businesses. These expenditures represent the multiplier effect
professionals to meet labor market demands, and an                                                                       of the university’s expenditures. This same multiplier effect is
improvement in the general quality of life, among other things.                                                          also reflected in the university’s expenditures on construction
Within each region served by a University of Texas System                                                                and capital improvements and in the expenditures of faculty,
institution local businesses benefit from easy access to a large                                                         staff and students on local goods and services. While not all
pool of part-time and full-time workers. These benefits are                                                              of these expenditures will be spent locally, the intent of this
particularly important when unemployment rates are low and                                                               study is to measure the direct expenditures of each University
labor markets tight. Companies and agencies that depend on                                                               of Texas System institution and estimate the additional
highly specialized skills often cluster around universities, and                                                         economic impacts upon their local regions.2
this may be particularly true of high-tech and information-
based companies. There is a consistent positive correlation                                                              The UT System includes 9 academic and 6 health institutions,
between the percentage of college graduates within a                                                                     as well as its administrative offices. The academic institutions
state and the per capita income for that state.1                                                                         span Texas from El Paso in the West to Tyler in the East, and
                                                                                                                         from Arlington in the North to Brownsville in the South.
The university outreach and service units provide valuable                                                               The health institutions are concentrated in the population
services to local businesses, government and households.                                                                 centers of Dallas, Houston/Galveston and San Antonio. In
Cultural and educational programs and facilities often are                                                               FY2004, UT System expenditures totaled $7.8 billion
available to the general public and provide intangible benefits                                                          from all sources to meet instruction, research, patient
to the host region by improving local residents’ quality of life.                                                        care and public service needs. At the beginning of FY2004
These economic gains impact the state as well as the local                                                               UT System institutions enrolled 177,676 students and
areas served by University of Texas System institutions and are                                                          employed 88,035 faculty and staff.
multifaceted. Quantifying these long-term impacts is beyond
the scope of this study.                                                                                                 In addition to the main campuses and these central locations, a
                                                                                                                         number of institutions have off-campus facilities for research
                                                                                                                         and specialized programs. These include The University of
                                                                                                                         Texas M. D. Anderson Cancer Center’s Science Park in Bastrop
            The University of Texas System by Region                                                                     County, The University of Texas at San Antonio’s Institute of
                                                                                                                         Texan Cultures in downtown San Antonio, The University of
                                                                                                                         Texas at Arlington’s Robotics Institute in Fort Worth, The
                                                                                                                         University of Texas at Brownsville/Texas Southmost College’s
                                                                                                                         South Padre Island Center, The University of Texas at Austin’s
                                                                                                                         McDonald Observatory in the Davis Mountains and several
                                    Arlington-Fort Worth
                                          UT Arlington                         Tyler-Longview-Marshall                   others. The 15 institutions and their respective regions are
                                                                                          UT Tyler
                                                                                          UT Health Center Tyler
                                                                                                                         listed in Table 1.
                    Midland-Odessa
                       UT Permian Basin                  Dallas-Plano-Irving
    El Paso
    UT El Paso                                           UT Dallas
                                                         UT Southwestern Medical Center
                                                                                                                         1
                                                                                                                           US Census Bureau. Statistical Abstract of the United States,
                             Austin-Round Rock                                      Houston-Galveston
                                                                                      UT M. D. Anderson Cancer Center
                                                                                                                         2003.
                             UT Austin
                             UT System Administration
                                                                                      UT Health Science Center Houston
                                                                                      UT Medical Branch Galveston
                                                                                                                         2
                                                                                                                           Traditionally, economic impact studies measure three types
                                                                                                                         of impacts: direct, indirect and induced. Direct impacts
                                                                                                                         include first round expenditures of the university. Indirect
                              San Antonio                                                                                and induced expenditures result from the initial direct
                              UT San Antonio
                              UT Health Science Center San Antonio                                                       expenditures. Indirect expenditures are made when businesses
                                                                                                                         purchase goods and services from other businesses to serve
                                                                                                                         the needs of the university. Induced expenditures are made
                          McAllen-Edinburg-Pharr Brownsville-Harlingen-San Benito                                        by employees of these businesses who use their earnings to
                                                                                                                         make additional purchases in the community. This study
                                 UT Pan American
                                                          UT Brownsville/Texas Southmost College


                                                                                                                         uses metropolitan statistical areas (MSAs) as defined in 2003
                                                                                                                         with two exceptions: Tyler-Longview-Marshall and Midland-
                                                                                                                         Odessa. Counties included are outlined in Appendix 3.

A Study of the Economic Impact of                                                                                                                                                  Page 4
The University of Texas System
Introduction
UT System Strengthens the Texas Economy of Today and Tomorrow



                                                                   Table 1
                                                 The University of Texas System Institutions

 Academic Institutions                                                    Health Institutions


 The University of Texas at Arlington                                     The University of Texas Southwestern Medical Center at Dallas
 Region: Arlington-Fort Worth                                             Region: Dallas-Plano-Irving
 Abbreviation: UTA                                                        Abbreviations: Southwestern, UTSWMC


 The University of Texas at Austin                                        The University of Texas Medical Branch at Galveston
 Region: Austin-Round Rock                                                Region: Houston-Galveston
 Abbreviation: UT Austin                                                  Abbreviation: UTMB - Galveston


 The University of Texas at Brownsville/ Texas Southmost College          The University of Texas Health Science Center at Houston
 Region: Brownsville-Harlingen-San Benito                                 Region: Houston-Galveston
 Abbreviation: UTB/TSC                                                    Abbreviation: UTHSC-H


 The University of Texas at Dallas                                        The University of Texas at San Antonio
 Region: Dallas-Plano-Irving                                              Region: San Antonio
 Abbreviation: UTD                                                        Abbreviation: UTHSC - SA


 The University of Texas at El Paso                                       The University of Texas M. D. Anderson Cancer Center
 Region: El Paso                                                          Region: Houston-Galveston
 Abbreviation: UTEP                                                       Abbreviation: UTMDACC


 The University of Texas-Pan American                                     The University of Texas Health Center at Tyler
 Region: McAllen-Edinburg-Pharr                                           Region: Tyler-Longview-Marshall
 Abbreviation: UTPA                                                       Abbreviation: UTHC-T


 The University of Texas of the Permian Basin
 Region: Midland-Odessa
 Abbreviation: UTPB


 The University of Texas at San Antonio
 Region: San Antonio
 Abbreviation: UTSA


 The University of Texas at Tyler
 Region: Tyler-Longview-Marshall
 Abbreviation: UTT




A Study of the Economic Impact of                                                                                                    Page 5
The University of Texas System
Current Findings
The University of Texas System Aggregate Impacts



                                                                          Table 2
                                  Total Economic Impact of The University of Texas System on Regional Economies FY2004
                                                              Initial                       Output Impact              Personal              Employment
 Region
                                                         Direct Spending                (Initial + Recirculated)    Income Impact*             Impact*


 Arlington-Fort Worth                                      $402,122,707                       $616,820,092           $197,600,558              10,797

 Austin-Round Rock                                        1,830,017,594                       2,515,218,138            731,083,756             51,287

 Brownsville-Harlingen-San Benito                           109,797,458                         148,297,156             44,084,169              3,937

 Dallas-Plano-Irving                                      1,066,582,048                       1,598,219,989            515,287,735             23,004

 El Paso                                                    323,960,651                         463,002,277            140,191,363              9,886

 Houston-Galveston                                        3,687,691,398                       5,565,724,782          1,804,991,444             79,587

 McAllen-Edinburg-Pharr                                     187,555,647                         250,788,908             72,154,543              6,581

 Midland-Odessa                                               51,414,276                         71,945,468             21,648,298              1,551

 San Antonio                                                838,632,167                       1,279,620,972            397,420,753             23,199

 Tyler-Longview-Marshall                                    207,155,839                         298,669,446             87,928,539              5,886

 Aggregate                                             $8,704,929,784                    $12,808,307,228           $4,012,391,158            215,715
 *Employment includes full and part-time jobs. Personal income impact is included in the output impact.




The total economic impact of the 15 institutions and                                             do not account for the additional spending of visitors or of
administration on the respective host economies was $12.8                                        students who remain in the host regions during the summer.
billion during FY2004.3 Of the total economic impact,                                            Conservative assumptions were made when necessary. These
$8.7 billion, or 68 percent was the initial direct spending                                      direct expenditures were then modeled within a regional
of the institutions ($7.8 billion) and nonresident students                                      input/output model for each region.6 The economic impact
($975 million).4 An additional $4.1 billion was spent in                                         estimates are based upon input-output models for each
host regions as dollars re-circulated.5 For every dollar in                                      institution’s regional economy. These estimates show the
initial spending, an average of 44 additional cents was                                          economic impact upon each regional economy and are not
spent within host regions.                                                                       intended to show the overall impact to the state. However,
                                                                                                 these effects do have an aggregate impact in Texas.
The benefits derived from the UT System were estimated for
four important categories of spending: spending on goods and                                     The UT System adds $4 billion in personal income (an
services for each institution (operations); capital purchases and                                element of the output impact) in its host regions as a
construction; faculty and staff expenditures and the spending                                    result of the initial spending of the institution, faculty/
of students who moved to the area to attend school. The                                          staff and nonresident students. Personal income includes
goal of this research was to provide a reasonable, conservative                                  salary, wage and proprietor income, which directly impact
estimate of the economic impacts of UT System institutions                                       people’s pocketbooks.
upon their host regions. Various financial, employee, and
student data were provided by the UT System administration                                       These output and income impacts are better understood when
and utilized to estimate direct expenditures (see Appendix 1 for                                 translated to the number of jobs added or supported in a
a full discussion of methodology). Moreover, these estimates                                     region as a result of the presence of a UT System institution.



A Study of the Economic Impact of                                                                                                                         Page 6
The University of Texas System
Current Findings
The University of Texas System Aggregate Impacts



                                                                             Table 3
                                                  Jobs that Exist Due to Institution-Related Spending FY2004
           Institution/Region                                              On-Campus Jobs      Off-Campus Jobs   Total Employment*
           UT Arlington                                                          4,537               6,260             10,797
           Total Impact, Arlington-Fort Worth                                    4,537               6,260             10,797
           UT Austin                                                            21,673             27,450              49,123
           System Administration                                                  546                1,618              2,164
           Total Impact, Austin- Round Rock                                     22,219             29,068              51,287
           UT Brownsville/Texas Southmost College                                1,758               2,179              3,937
           Total Impact, Brownsville-Harlingen-San Benito                        1,758               2,179              3,937
           UT Dallas                                                             3,126               3,148              6,274
           UT Southwestern Medical Center - Dallas                               5,784             10,946              16,730
           Total Impact, Dallas-Plano-Irving                                     8,910             14,094              23,004
           UT El Paso                                                            4,003               5,883              9,886
           Total Impact, El Paso                                                 4,003               5,883              9,886
           UT Medical Branch - Galveston                                        13,340             14,332              27,672
           UT Health Science Center-Houston                                      5,528               6,273             11,801
           UT M. D. Anderson Cancer Center                                      13,292             26,822              40,114
           Total Impact, Houston-Galveston                                      32,160             47,427              79,587
           UT Pan American                                                       3,025               3,556              6,581
           Total Impact, McAllen-Edinburg-Pharr                                  3,025               3,556              6,581
           UT Permian Basin                                                       600                 951               1,551
           Total Impact, Midland-Odessa                                           600                 951               1,551
           UT San Antonio                                                        3,752               7,110             10,862
           UT Health Science Center - San Antonio                                4,979               7,358             12,337
           Total Impact, San Antonio                                             8,731             14,468              23,199
           UT Tyler                                                               829                1,540              2,369
           UT Health Center - Tyler                                              1,263               2,254              3,517
           Total Impact, Tyler-Longview-Marshall                                 2,092               3,794              5,886
           Total Impact on Regional Economies                                  88,035             127,680            215,715
           *Employment includes full and part-time jobs.



The combined employment impact of all 15 institutions on their host regions was 215,715 jobs. This includes the on-
campus employment of 88,035 jobs (including student workers) and the 127,680 jobs in the local region supported by the additional
economic impact. On average, for every on-campus job, an additional 1.5 jobs are added because of institution-related
spending.
3
  Considered the greatest measure of economic impact, output measures all transactions including the cost of labor and supplies
needed in order to support a level of economic activity.
4
  Nonresident students include out-of-state, foreign and students who permanently reside in a county outside the host region.
5
  The indirect and induced economic impacts.
6
   The 2002 IMPLAN I/O Model was used for this study. IMPLAN is a widely used I/O model and provides reasonable,
conservative estimates of economic impacts when compared to other I/O models. See “Evaluating Alternative Regional Planning
Models,” by John B. Crihfield in Growth & Change, Spring 1991. Vol. 22 Issue 2.



A Study of the Economic Impact of                                                                                                    Page 7
The University of Texas System
Current Findings
The University of Texas System Aggregate Impacts



                                                                            Table 4
                                                Impact of Operational Expenditures on Regional Economies FY2004
                                                                  Initial                     Output Impact                       Personal                    Employment
 Region                                                      Direct Spending              (Initial + Recirculated)             Income Impact*                   Impact*


 Arlington-Fort Worth                                           $69,556,004                      $112,259,554                     $41,789,450                    5,928


 Austin-Round Rock                                              415,968,832                       613,842,785                     233,315,880                   35,193


 Brownsville-Harlingen-San Benito                                41,958,039                         62,294,934                      24,961,604                   3,040


 Dallas-Plano-Irving                                            274,380,165                       434,465,804                     161,937,504                   13,146


 El Paso                                                         82,454,454                       124,962,864                       47,040,218                   6,265


 Houston-Galveston                                            1,142,419,220                     1,844,526,466                     715,980,331                   51,384


 McAllen-Edinburg-Pharr                                          58,856,507                         86,298,729                      32,311,502                   4,811


 Midland-Odessa                                                  13,357,953                         18,850,629                       6,079,814                    967


 San Antonio                                                    178,194,524                       288,127,650                     107,746,604                   13,083


 Tyler-Longview-Marshall                                         56,869,298                         84,763,570                      28,752,518                   3,605


 Aggregate                                                $2,334,014,996                     $3,670,392,985                  $1,399,915,425                   137,422

 *Employment includes full and part-time jobs. Personal income impact is included in the output impact. Direct employment is included in operations impact.




OPERATIONAL EXPENDITURES
During the FY2004 school year, UT System institutions spent $2.3 billion on goods and services, with many of these
expenditures occurring in their host regions. In order to provide the goods and services necessary to support the needs of an
institution, businesses in the respective regions pay employees and purchase additional goods and services – the multiplier effect.
These multiplier effects are estimated to be $1.3 billion, for a total combined impact of $3.7 billion.

Operational expenditures support $1.4 billion in personal income and approximately 137,422 jobs.




A Study of the Economic Impact of                                                                                                                                        Page 8
The University of Texas System
Current Findings
The University of Texas System Aggregate Impacts



                                                                                Table 5
                                                         Impact of Capital Expenditures on Regional Economies
                                                                 Initial                      Output Impact                 Personal              Employment
 Region                                                     Direct Spending               (Initial + Recirculated)       Income Impact*             Impact*
 Arlington-Fort Worth                                          $49,367,016                       $84,817,485               $31,964,486                 910
 Austin-Round Rock                                             181,573,900                       235,780,354                56,111,388               1,644
 Brownsville-Harlingen-San Benito                                14,407,181                       19,161,194                 4,269,026                 226
 Dallas-Plano-Irving                                           154,472,418                       264,312,965               109,256,306               3,360
 El Paso                                                         33,618,070                        51,639,382               16,940,001                 671
 Houston-Galveston                                             558,652,239                       954,155,223               391,127,269               9,085
 McAllen-Edinburg-Pharr                                          21,448,885                        28,732,209                7,082,533                 360
 Midland-Odessa                                                  12,940,158                        20,467,170                7,519,456                 261
 San Antonio                                                   147,351,757                       248,715,292                91,405,202               3,186
 Tyler-Longview-Marshall                                         37,814,987                        61,041,609               20,884,462                 879
 Aggregate                                                $1,211,646,611                   $1,968,822,882                $736,560,130               20,582
 *Employment includes full and part-time jobs. Personal income impact is included in the output impact.




CAPITAL EXPENDITURES                                                                             finance debt that supports most of this construction. Another
During FY2004 UT System institutions spent approximately                                         substantial portion of capital construction builds auxiliary
$1.2 billion on capital items including construction of facilities,                              facilities such as housing, parking and recreation, typically
equipment, vehicles, books and art. After considering the                                        financed by debt retired from revenues generated by facility
additional spending caused by these purchases, these capital                                     use.
expenditures contributed to an estimated total aggregate
economic impact of $2 billion upon the regions where UT                                          The state supports capital construction primarily through
System institutions are located ($757 million beyond the initial                                 authorization of tuition revenue bonds (TRB). Overall
expenditures). Capital expenditures support $736.6 million in                                    TRB funding comprises 10 percent of the UT System
personal income and approximately 20,582 jobs.                                                   capital construction program, yet TRB funding plays an
                                                                                                 essential role in providing educational space in academic
This analysis shows the economic impact for one year of capital                                  institutions. While space utilized for research, patient-care
spending. The need for capital construction is driven by the                                     and auxiliary services can often be self-funded through related
growth in health services (hospital and clinic space), research                                  revenues to support the debt, that is not the case for academic
(laboratory space) enrollment (classroom space, housing and                                      educational space.
parking). It is also driven by the need to renew and upgrade                                                                     Table 6
aging infrastructure (the average age of UT System campus                                                 Projected Capital Improvement Spending by Institution
buildings is 30 years). During the next six years, UT System
                                                                                                   Academic        2004-2009     Health               2004-2009
institutions are projected to spend an estimated $5 billion on                                     UTA            $153,924,426   UTSWMC              $445,600,000
construction projects. Additional expenditures as a result of                                      UT Austin       688,320,000   UTMB                  348,330,254
these purchases will add $2.7 billion for a combined impact of                                     UTB/TSC          41,110,000   UTHSC-H               442,550,000
$7.7 billion over the next six years.                                                              UTD             135,643,750   UTHSC-SA              124,700,000
                                                                                                   UTEP            103,100,000   UTMDACC             1,876,030,000
Of the projected $5 billion in capital construction, $3.2                                          UTPA             66,181,000   UTHC-T                 17,513,250
billion will be at the health institutions to support the growing                                  UTPB             26,380,000
demand for services and health-related research. Patient                                           UTSA            447,426,654   Combined
care and research revenues from activities in these buildings                                      UTT              65,834,000   Total            $4,982,643,334




A Study of the Economic Impact of                                                                                                                             Page 9
The University of Texas System
Current Findings
The University of Texas System Aggregate Impacts



                                                                                 Table 7
                                                     Impact of Faculty/Staff Spending on Regional Economies FY2004

                                                                   Initial                      Output Impact              Personal      Employment
    Region                                                    Direct Spending               (Initial + Recirculated)    Income Impact*     Impact*


    Arlington-Fort Worth                                       $138,025,486                       $193,017,834            $48,693,669      1,424


    Austin-Round Rock                                            792,305,843                     1,025,862,013            236,338,326      7,084


    Brownsville-Harlingen-San Benito                              44,478,185                         54,371,719            10,966,512        484


    Dallas-Plano-Irving                                          564,250,563                       785,562,889            205,801,308      5,325


    El Paso                                                      106,002,804                       136,596,593             29,795,637      1,089


    Houston-Galveston                                          1,956,571,511                     2,718,270,121            682,407,887     18,609


    McAllen-Edinburg-Pharr                                        76,978,970                         93,735,046            19,028,770        765


    Midland-Odessa                                                14,557,196                         18,096,262             3,731,089        138


    San Antonio                                                  402,960,416                       560,388,108            137,054,954      4,613


    Tyler-Longview-Marshall                                       88,282,423                       116,612,354             26,302,133        952


    Aggregate                                              $4,184,413,396                     $5,702,512,939           $4,400,120,315     40,483

    *Employment includes full and part-time jobs. Personal income impact is included in the output impact.




FACULTY/STAFF SPENDING
In the FY2004 school year, $4.9 billion was spent on wages and benefits for UT System institution faculty and staff. There
were 88,035 employees of the UT System at the beginning of FY2004. These include 15,036 faculty and 72,999 staff.7 Without the
presence of these institutions, many of these professionals would not be present within the local region. These employees spend
money in their local regions for housing, food, services, and other items. The total disposable income circulating in each of these
regions was estimated to be approximately $4.2 billion.8 Based on this amount, the total economic impact to local regions from
faculty and staff spending was $5.7 billion in 2003/2004.

These expenditures provided $4.4 billion in personal income and supported 40,483 jobs.


7
  UT System Fast Facts 2005. The University of Texas System Pamphlets. Austin: February 2005; The University of Texas System
Office of the Chancellor. The University of Texas System Accountability and Performance Report, 2004-2005. Austin: February
2004. These figures include full and part-time employees.
8
  The direct $4.9 billion for salaries and wages was discounted by 15 percent to account for taxes.




A Study of the Economic Impact of                                                                                                                  Page 10
The University of Texas System
Current Findings
The University of Texas System Aggregate Impacts



                                                                   Table 8
                                                   Nonresident Student Expenditures FY2004

                                                        Students                  Percent                  Direct Spending


                            Total                       177,676                     100%                    $1,877,502,292


                             Nonresident                  92,255                      52%                      $974,854,781


                                    Out-of-State           8,284                       5%                       $87,537,028


                                    Foreign               15,786                       9%                      $166,810,662




STUDENT EXPENDITURES                                                     spending remains within the confines of the state. However,
Universities can be considered an “export” industry, similar to          the UT System attracts students from abroad and from other
other businesses within a region and can serve the needs of              states. Some of these students remain in Texas and contribute
local people, as well as attract individuals from other locations        in many different ways to the state’s economic well-being. In
within Texas, the United States or the world. During the years           the short-term, these students bring in new dollars not only
that these individuals attend college, they contribute to the            to their local regions, but to the state in general. Spending
economy by spending on goods and services, circulating “new              by these foreign and out-of-state students was estimated
money” into the local economy.                                           to be $256.3 million. This does not include the additional
                                                                         impacts due to the second round effects of businesses and
In Fall 2003, a total of 177,676 students were enrolled at               employees.
UT System institutions. These students spent over $1.9
billion dollars in their local economies for goods and                                                    Table 9
services.9 Not all student spending can be considered “new                         Nonresident Student Expenditure Impact on Local Regions
                                                                                                          FY2004
money.” Many students remain in their local regions to attend
college and their money would have circulated throughout the
local economy even without the presence of the University.                   Total Nonresident Students                                                      92,255
Of the total $1.9 billion dollars, $974.9 million can be
considered “new money” – money spent by residents of                         Total Direct Spending                                                     $974,854,781
other areas, including foreign and out-of-state students.10                  Additional Spending*                                                      $491,723,641

These direct expenditures impact local businesses through                    Employment Impact                                                              17,228
additional purchases by the impacted local businesses and                    *
                                                                                 The indirect and induced impact as a result of direct expenditures.
their employees. Considering the direct expenditures
from new money alone (purchases by students from                         9
                                                                           Students were estimated to spend a total of $10,587 each per
outside of the region), an additional $491.7 million is                  nine-month school year. This figure is an average of student
spent in local regions as a result of the presence of a UT               budgets supplied by the financial aid offices of each institution.
System institution for a total of $1.5 billion dollars, which            Impacts are probably greater, as this does not account for
supports 17,228 jobs.                                                    students who remain in the community during the summer
                                                                         months, and student budgets from financial aid offices are
                                                                         considered conservative in nature.
Of course, what one region gains in student spending, another            10
                                                                            In the Fall of 2004, 52 percent of UT System students had
loses. If a student leaves Brownsville to attend school in               permanent residences outside of their institution’s home
Dallas, Dallas receives additional spending while Brownsville            region (including foreign and out-of-state students).
loses. Overall, the state of Texas neither gains nor loses as the




A Study of the Economic Impact of                                                                                                                            Page 11
The University of Texas System
Current Findings
The University of Texas System Aggregate Impacts



                                                                              Table 10
                                                      Impact of Student Spending on Regional Economies FY2004

                                                Nonresident                 Initial                     Output Impact                       Personal                     Employment
 Region                                          Students*             Direct Spending              (Initial + Recirculated)             Income Impact*                    Impact*

 Arlington-Fort Worth                               13,738               $145,174,201                      $226,725,219                      $75,152,923                      2,535

 Austin-Round Rock                                  41,655                 440,169,019                      639,732,986                      205,318,162                      7,366

 Brownsville-Harlingen-San Benito                       847                   8,954,053                       12,469,309                        3,887,027                       187

 Dallas-Plano-Irving                                 6,953                   73,478,902                     113,878,331                       38,292,617                      1,173

 El Paso                                             9,642                 101,885,323                      149,803,438                       46,415,507                      1,861

 Houston-Galveston                                   2,844                   30,048,428                       48,772,972                      15,475,957                        509

 McAllen-Edinburg-Pharr                              2,865                   30,271,285                       42,022,924                      13,731,738                        645

 Midland-Odessa                                         965                  10,558,969                       14,531,408                        4,317,939                       185

 San Antonio                                        10,421                 110,125,470                      182,389,922                       61,213,993                      2,317

 Tyler-Longview-Marshall                             2,276                   24,189,131                       36,251,913                      11,989,426                        450

 Aggregate                                         92,255               $974,854,781                   $1,466,578,422                    $475,795,289                       17,228
 *Nonresident students include out-of-state, foreign and students who permanently reside in a county outside the host region. Employment includes full and part-time jobs. Personal income
 impact is included in the output impact.




A Study of the Economic Impact of                                                                                                                                                    Page 12
The University of Texas System
Current Findings
The University of Texas System Aggregate Impacts



                                                                         Table 11
                                Impact of The University of Texas System Health Institutions on Regional Economies FY2004

                                                           Initial                        Output Impact             Personal       Employment
 Health Institution                                   Direct Spending                 (Initial + Recirculated)   Income Impact*      Impact*


 UTMDACC                                                $1,936,397,455                     $2,969,900,423         $1,004,858,050     40,114


 UTMB Galveston                                          1,205,094,634                       1,786,422,917          551,032,439      27,672


 UTHSC-H                                                   546,199,309                         809,401,442          249,100,955      11,801


 UTHC-T                                                    126,848,375                         179,954,448           51,444,332       3,517


 UTHSC-SA                                                  458,100,969                         679,922,073          201,861,094      12,337


 UTSWMC                                                    834,055,306                       1,249,974,844          404,592,062      16,730


 Aggregate                                            $5,106,696,048                      $7,675,576,147         $2,462,888,932     112,171

 *Employment includes full and part-time jobs. Personal income impact is included in the output impact.




HEALTH CENTERS’ IMPACTS
UT System health institutions have unique impacts beyond education. These facilities attract outside funding and highly skilled
professionals, educators and researchers who contribute financially and culturally to their regions. In addition, these health
institutions serve Texas and their region by providing health care services, including uncompensated health care. Collectively, these
institutions add $7.7 billion and 112,171 jobs into their local regions. This is approximately 60 percent of the total UT System
economic impact and slightly more than half of the overall job impacts.

Beyond the direct and secondary economic benefits outlined, the UT System provides numerous additional benefits to the citizens
of Texas. A report on the impact of higher education from the Texas Comptroller’s Office identifies medical services performed
by the UT System in fiscal year 2001 valued at $3.7 billion. This care included hospital inpatient and outpatient services as
well as physician services.11 By fiscal year 2004, the service levels had increased to more than $5.8 billion. The UT System
provided nearly $1.3 billion in uncompensated health care in the six health institutions in FY2004. An additional $195 million in
medical services was provided for which payments were not collectible.

Many studies show that higher education is positively correlated with individual and social health. On the most recent census, 11.3
percent of high school graduates were below the poverty line, compared with 4.2 percent of baccalaureate degree recipients. 18.8
percent of high school graduates lacked health insurance, compared with 8.4 percent of college graduates. Within every income
group, the percentage perceiving themselves as very healthy increases with higher levels of education.12 For example, 73
percent of college graduates with incomes between $35,000 and $55,000 report being in excellent or very good health, compared to
62 percent of high school graduates in the same income bracket.
11
   Carole Keeton Strayhorn, Texas Comptroller of Public Accounts. Special Report: The Impact of the State Higher Education
System on the Texas Economy. Austin: Texas Comptroller, 2003. <http://www.window.state.tx.us/specialrpt/highered03/
highered03.pdf>.
12
   US Census Bureau. Population Survey, March 2004 Supplement.


A Study of the Economic Impact of                                                                                                             Page 13
The University of Texas System
Current Findings
The University of Texas System Aggregate Impacts



                                                                  Table 12
                                Services Rendered by The University of Texas System Health Institutions FY2004
                  UT System Health                        Gross Patient               Uncompensated          Bad Debt/
                  Institution                               Charges                     Health Care       Uncollectible Debt


                  UTMDACC                                $2,587,365,092                    $236,187,350     $39,236,038


                  UTMB Galveston                          1,577,098,753                     476,335,941      90,995,321


                  UTHSC-H                                   451,063,196                     163,780,256      26,223,151


                  UTHC-T                                    207,108,069                      36,758,695      15,830,425


                  UTHSC-SA                                  213,397,590                      85,647,220       3,990,966


                  UTSWMC                                    750,551,041                     312,465,011      18,464,295


                  Aggregate                            $5,786,583,741               $1,311,194,473        $194,740,196

                  Source: The UT System FY2004 Financial Report (Schedules C-1A and D-6)




HEALTH CENTERS’ IMPACTS
Other results from UT System health institutions in FY2003:13
•        Patient care included 66,291 hospital admissions, 5,318,945 clinic visits and 1,274,113 hospital days.
•        Medical research alone expended $1.0 billion in FY2004, up 7.8 percent from FY2003.
•        The UT System, with 99 patents, is ranked fifth in the nation in terms of patents granted to universities. Of the 99
         patents, 63 were from the medical institutions.
•        Nearly 800 graduates of medical schools.
•        150 graduates of dental schools and 100 dental assistants graduates.
•        Over 150 Ph.D. medical scientists.
•        Nearly 700 nurses, including 240 master’s and doctoral degree recipients.
•        Over 500 allied health professionals.
•        Over 150 public health scientists, including 125 master’s and 37 doctoral degree recipients.
•        Over 800 Board qualified graduates of medical residency programs entering medical practice.
•        Top-tier faculty members, including 5 Nobel laureates.
•        Provide comprehensive health care for approximately 108,000 correctional patients in the Texas Department of
         Criminal Justice through the UTMB Galveston Correctional Managed Care Program.
•        Texas tax support for the UT System health institutions was $842 million in 2003, which was effectively leveraged 4-1
         to secure other funds from alternate sources, and benefit the state with their overall direct expenditure budget of $4.5
         billion.
•        Additional economic impacts to Texas communities through research and health centers in Bastrop, Brownsville,
         Edinburg, Harlingen, Laredo and Smithville.

 UT System Fast Facts 2005. The University of Texas System Pamphlets. Austin: February 2005; The University of Texas System
13

Office of the Chancellor. The University of Texas System Accountability and Performance Report, 2004-2005. Austin: February
2004; UT System Fast Facts. UT System Office of Public Affairs and Communications. May 2003. <http://www.utsystem.edu/
News/FastFacts.htm>.




A Study of the Economic Impact of                                                                                              Page 14
The University of Texas System
Economic Impacts by Region
Arlington-Fort Worth



                                                                              Table 13
                                    Total Impact of The University of Texas System on the Arlington-Fort Worth Region FY2004

                                                                   Initial                      Output Impact             Personal      Employment
    Institution                                               Direct Spending               (Initial + Recirculated)   Income Impact*     Impact*

    The University of Texas at Arlington                         $402,122,707                     $616,820,092          $197,600,558      10,797


    *Employment includes full and part-time jobs. Personal income impact is included in the output impact.




In FY2004, The University of Texas at Arlington directly employed 4,537 people, slightly more than the employment
of RadioShack Corporation in the region. As a result of the expenditures of the University and its faculty, staff and
students, UT Arlington adds $616.8 million to the regional economy and supports approximately 10,797 jobs.

The Arlington-Fort Worth Region is part of the overall DFW Metroplex. The Texas State Data Center estimated the population of
this four county area to be 1.9 million people in 2003. Primary industries in this region include business services, high technology,
oil and gas, aviation and electronics. According to analysis by the Comptroller’s Office, key industry clusters poised for growth in
the Arlington-Fort Worth area include investment related services, aviation, high tech, health care, transportation, logistics and
warehousing. Many of these industries will require a highly skilled and educated workforce. According to the 2000 US Census, 25
percent of people 25 years and older living in the Arlington-Fort Worth Region have attained at least a bachelor’s degree.

THE UNIVERSITY OF TEXAS AT ARLINGTON AT A GLANCE
•              Founded in 1895, became part of UT System in 1965.
•              Employed 1,135 faculty in fall of 2003.
•              Enrolled 25,297 students in fall of 2004.
•              UTA graduated 5,151 people in the 2003/2004 school year, including 3,280 bachelor’s degrees, 1,796 master’s and
               75 doctoral degree recipients.
•              UTA School of Nursing has the largest graduate nursing program in Texas and is the 2nd largest producer of nursing
               undergraduates. UTA nursing students serving in community placements contributed approximately 52,000 hours of
               service each semester at an estimated value of $832,000.
•              In 2001-2002, 479 UTA School of Social Work students provided 155,058 hours of service in 293 social service
               agencies, hospitals, and governmental agencies. The value of these services is estimated at $2.9 million.
•              The School of Urban and Public Affairs is the state’s only legislatively-mandated and funded academic program devoted
               to conducting of research into urban problems and public policy, to assisting local jurisdictions in resolving urban
               problems, and to educating students for careers in urban public service.
•              Nanotechnology Research and Teaching Facility is one of 20 on university campuses in the US.
•              In the top 10 percent nationally in granting electrical engineering and computer science engineering degrees (American
               Association of Engineering Societies, 2002).
•              Online CSE/EE M.A. degree among the best in the nation (US News & World Report, 2002).
•              21 fellows of national engineering professional societies (2003).
•              According to UTA, the Automation & Robotics Research Institute located at the university has created over 2,000 jobs,
               worked with industry to increase sales by $215 million, increased investment in production facilities by $52 million and
               worked to reduce manufacturing costs by $28 million.
•              A recent analysis of the Center for Economic Development Research and Service (CEDRAS), located in the School of
               Urban and Public Affairs, estimated that CEDRAS projects resulted in the creation/retention of 280 jobs, $6.3 million
               in public sector investment, $310 million in private sector investment and $225,000 in increased tax revenues.




A Study of the Economic Impact of                                                                                                                  Page 15
The University of Texas System
Economic Impacts by Region
Austin-Round Rock



                                                                               Table 14
                                      Total Impact of The University of Texas System on the Austin-Round Rock Region FY2004
                                                        Initial                Output Impact               Personal           Employment
    Institution                                   Direct Spending          (Initial + Recirculated)     Income Impact*          Impact*

    The University of Texas at Austin                  $1,774,833,463                      $2,436,290,297     $704,168,283      49,123
    System Administration                                   55,184,131                          78,927,841      26,915,473       2,164
    Total Impact                                     $1,830,017,594                      $2,515,218,138      $731,083,756       51,287

    *Employment includes full and part-time jobs. Personal income impact is included in the output impact.




The University of Texas System’s largest university is located in the Austin-Round Rock Region. The University of
Texas at Austin directly employed 21,673 people in FY2004. Combined with the 546 people employed at the UT System
Administration in FY2004, the University of Texas System employs more than Dell Computer Corporation in the
region. In FY2004, these institutions contributed to a combined impact of $2.5 billion and 51,287 total jobs as a result of
operational and capital expenditures and the expenditures of faculty/staff and nonresident students.

The Texas State Data Center estimated the population of this five county area to be 1.4 million people in 2003. Austin’s economic
base includes state government, high tech, communications and business services. In 2002, the Texas State Comptroller’s Office
prepared a series of regional outlooks. As part of these outlooks, competitive clusters were identified for different regions in
Texas. The Austin-Round Rock Region is part of the Capital Region analyzed for the outlook. According to the Comptroller,
clusters poised for growth include: high tech, health care, business management services, public relations, legal services, accounting,
personnel and insurance.14 Many of these industries will require a highly skilled and educated workforce. According to the 2000 US
Census, 37 percent of people 25 years and older living in the Austin-Round Rock Region have attained at least a bachelor’s degree,
which is the highest in the state.

THE UNIVERSITY OF TEXAS AT AUSTIN AT A GLANCE
•              Founded and became part of the UT System in 1883.
•              Employed 2,901 faculty in fall 2003.
•              Enrolled 50,377 students in fall of 2004.
•              UT Austin graduated 13,065 people in the 2003/2004 school year, including 8,959 bachelor’s, 2,835 master’s, 683
               doctoral and 588 professional degree recipients.
•              Ranked 15th among top world universities (The Times Higher Education Supplement, 2004).
•              One of the top 25 “hottest schools” (Kaplan/Newsweek, 2005 edition).
•              Ranked number 4 as best graduate business program for Hispanics (Hispanic Business, 2004).
•              Ranked number 1 as best law program for Hispanics (Hispanic Business, 2004).
•              2nd highest level of federal research expenditure in Texas.
•              Ranked 5th in baccalaureates awarded to minority students (Black Issues in Higher Education, 2004).
•              Highest number of National Academies of Science and Engineering members of any institution in Texas (66 in 2004).
•              The university has the 2nd largest single-campus enrollment in the nation, including students from all 254 counties in
               Texas, all 50 states and more than 100 foreign countries.
•              Since 1989, The Austin Technology Incubator’s (ATI) graduate companies have created more than 3,000 jobs and
               generated $1.5 billion in revenue.
•              The Red McCombs School of Business executive education program has trained more than 11,000 business managers
               in the past five years.
14
  Economic Trends and Outlook. Carole Keeton Strayhorn, Texas Comptroller of Public Accounts. Aug. 2002. <http://
www.window.state.tx.us/ecodata/regional/capital/outlook.html>.


A Study of the Economic Impact of                                                                                                        Page 16
The University of Texas System
Economic Impacts by Region
Brownsville-Harlingen-San Benito



                                                                           Table 15
                           Total Impact of The University of Texas System on the Brownsville-Harlingen-San Benito Region FY2004
                                                                  Initial                      Output Impact             Personal      Employment
    Institution                                              Direct Spending               (Initial + Recirculated)   Income Impact*     Impact*

    The University of Texas at Brownsville/
    Texas Southmost College                                    $109,797,458                      $148,297,156          $44,084,169       3,937


    *Employment includes full and part-time jobs. Personal income impact is included in the output impact.




The University of Texas at Brownsville/Texas Southmost College is located in Brownsville. UT Brownsville/Texas
Southmost College directly employs 1,758 people, the second largest employer in Cameron County. In FY2004, this
institution contributed to a total impact of $148.3 million and 3,937 total jobs as a result of operational and capital
expenditures and the expenditures of faculty/staff and nonresident students flowing through the region’s economy.

The Texas State Data Center estimated the population of the Brownsville-Harlingen-San Benito Region (Cameron County) to be
365,095 people in 2003, 85 percent of whom are Hispanic. Primary industries in Brownsville include apparel production, health
care, agriculture, oil and gas, and international trade related businesses. Some of these industries will require a highly skilled and
educated workforce. According to the 2000 US Census, only 13 percent of people 25 years and older living in the Brownsville-
Harlingen-San Benito Region have attained at least a bachelor’s degree.

THE UNIVERSITY OF TEXAS AT BROWNSVILLE/TEXAS SOUTHMOST COLLEGE AT A GLANCE
•              Founded in 1973, became a part of the UT System in 1989.
•              Employed 540 faculty in fall of 2003.
•              Enrolled 11,546 students in fall of 2004.
•              UT Brownsville/Texas Southmost College graduated 850 people in the 2003/2004 school year, including 684 bachelor’s
               and 166 master’s degree recipients.
•              Ranked number 1 nationally in number of mathematics baccalaureate degrees awarded to Hispanic students (Black Issues
               in Higher Education, 2004).
•              Ranked number 25 nationally in number of baccalaureate degrees awarded to Hispanic students (Black Issues in Higher
               Education, 2004).
•              Ranks 26th in the nation and 7th in Texas as a producer of Hispanics with graduate degrees.
•              Almost 92 percent of the University’s student population is Hispanic and 61 percent are women.
•              Approximately 94 percent of UTB/TSC students in the Associate Degree Nursing program are passing the National
               Council Licensing Exam – RN.
•              UTB/TSC serves nearly 10,000 students in degree and certificate programs and some 3,000 individuals in continuing
               education courses.
•              Center for Biomedical Studies recognized for number of publications in internationally peer-reviewed journals.




A Study of the Economic Impact of                                                                                                                Page 17
The University of Texas System
Economic Impacts by Region
Dallas-Plano-Irving



                                                                              Table 16
                                     Total Impact of The University of Texas System on the Dallas-Plano-Irving Region FY2004

                                                                  Initial                      Output Impact             Personal      Employment
    Institution                                              Direct Spending               (Initial + Recirculated)   Income Impact*     Impact*

    The University of Texas at Dallas                           $232,526,742                      $348,245,145         $110,695,673      6,274

    The University of Texas
    Southwestern Medical Center at Dallas                        834,055,306                     1,249,974,844          404,592,062     16,730

    Total Impact                                            $1,066,582,048                    $1,598,219,989          $515,287,735      23,004

    *Employment includes full and part-time jobs. Personal income impact is included in the output impact.




Two University of Texas System institutions are located within the eight-county Dallas-Plano-Irving Region: The
University of Texas at Dallas and The University of Texas Southwestern Medical Center at Dallas. Together, these
institutions directly employ 8,910 people, second only to Texas Instruments in the region. In FY2004, these institutions
contributed to a combined impact of $1.6 billion and 23,004 total jobs as a result of operational and capital expenditures
and the expenditures of faculty/staff and nonresident students.

The Dallas-Plano-Irving Region is a major portion of the overall DFW Metroplex and has a highly diversified economy. The
Texas State Data Center estimated the population of this 8-county area to be 3.7 million people in 2003. Key industries include
high tech, communications, aviation, oil and gas, electronics, and financial-related services. UT Dallas was a key driver in the
development of the telecom industry in Dallas and continues to support this important economic cluster.15 According to analysis by
the Comptroller’s Office, key industry clusters poised for growth in the Dallas-Plano-Irving area include investment related services,
high technology, health care, transportation, logistics and warehousing. Many of these industries will require a highly skilled and
educated workforce. According to the 2000 US Census, 30 percent of people 25 years and older living in the Dallas-Plano-Irving
Region have attained at least a bachelor’s degree.

THE UNIVERSITY OF TEXAS AT DALLAS AT A GLANCE
•              Founded in 1961, became a part of the UT System in 1969.
•              Employed 679 faculty in fall of 2003.
•              Enrolled 14,092 students in fall of 2004.
•              UTD graduated 3,240 people in the 2003/2004 school year, including 1,823 bachelor’s, 1,363 master’s, 50 doctoral
               and 4 professional degree recipients.
•              Ranked among top 100 best values in public colleges (Kiplinger’s, 2002 and 2003).
•              Ranked 5th in the THECB Report on Expenditures for Research and Development at Texas Public Universities.
•              Audiology program ranked 5th among top programs in the US (US News & World Report, 2001).
•              Ranked 5th among Texas universities in number of National Merit Scholars (Lombardi Program on Measuring
               University Performance, 2004).
•              3rd place, “Best of the Web,” Higher Education Category (Center for Digital Education, 2004).
•              More than 45 percent of UTD’s undergraduate diplomas are awarded to first-generation college graduates.
•              The Jonsson School is one of the fastest-growing engineering schools in the US and ranks 2nd nationally in the
               number of graduates with degrees in computer science each year.


15
     Federal Reserve Bank of Dallas. Talking Tech in Texas. Dallas: 2000.




A Study of the Economic Impact of                                                                                                                Page 18
The University of Texas System
Economic Impacts by Region
Dallas-Plano-Irving



THE UNIVERSITY OF TEXAS SOUTHWESTERN MEDICAL CENTER AT DALLAS AT A GLANCE
•         Founded as part of the UT System in 1972.
•         Employed 1,588 faculty in fall of 2003.
•         Enrolled 2,273 students in fall of 2004.
•         UTSWMC graduated 408 people in the 2003/2004 school year, including 61 bachelor’s, 84 master’s, 59 doctoral and 204
          professional degree recipients.
•         Received 1,959,288 clinic visits in FY2003.
•         Totaled 407,991 patient bed days in FY2003.
•         The three schools train more than 3,520 medical, graduate and allied health students, residents and postdoctoral fellows
          each year.
•         Annually, UTSWMC doctors provide inpatient hospital care to more than 86,700 people, oversee 2 million out-patient
          visits and deliver more than 18,800 babies.
•         Ongoing support from the National Institutes of Health, foundations, individuals and corporations provide more than
          $298 million per year to fund more than 2,000 research projects annually.
•         Since 1984, more than 520 UTSWMC researchers have been named as inventors on more than 1,000 invention
          disclosures, yielding a total of more than 300 issued US patents.
•         The University’s distinguished faculty includes four active Nobel laureates, more than any other medical school in the
          world.
•         Ranked among the top 20 American institutions for the amount of total NIH grants (2002).
•         In the top 20 for royalty income ($10.6 million; Chronicle of Higher Education, 2001).
•         Ranked number 1 in pharmacology graduate studies (US News and World Report, 2002).
•         Ranked number 2 in citations for impact in biology and biochemistry; and molecular biology and genetics (Science Watch,
          2002).




A Study of the Economic Impact of                                                                                          Page 19
The University of Texas System
Economic Impacts by Region
El Paso



                                                                              Table 17
                                           Total Impact of The University of Texas System on the El Paso Region FY2004
                                                                Initial                      Output Impact             Personal      Employment
 Institution                                               Direct Spending               (Initial + Recirculated)   Income Impact*     Impact*

 The University of Texas at El Paso                          $323,960,651                      $463,002,277          $140,191,363      9,886

 *Employment includes full and part-time jobs. Personal income impact is included in the output impact.




The University of Texas at El Paso directly employs 4,003 people, one of the top ten employers in the El Paso Region.
In FY2004, this institution contributed to a total impact of $463 million and 9,886 total jobs as a result of operational and
capital expenditures and the expenditures of faculty/staff and nonresident students.

The El Paso Region is located in far west Texas. The Texas State Data Center estimated the population of El Paso County to be
707,385 people in 2003, 80 percent of whom are Hispanic. Primary industries in El Paso include business services, transportation
and trade related services, health care and tourism. The 2002 Economic Outlook prepared by the Texas Comptroller’s Office
identified several key industry clusters that show competitive advantage and growth potential for the Upper Rio Grande region, of
which El Paso is a part. These clusters include health care, business services, and international trade related industries. Many of
these industries will require a highly skilled and educated workforce. According to the 2000 US Census, 17 percent of people 25
years and older living in the El Paso Region have attained at least a bachelor’s degree.

THE UNIVERSITY OF TEXAS AT EL PASO AT A GLANCE
•           Founded in 1914 and became part of the UT System in 1919.
•           Employed 883 faculty in fall of 2003.
•           Enrolled 18,918 students in fall of 2004.
•           UTEP graduated 2,437 people in the 2003/2004 school year, including 1,754 bachelor’s, 659 master’s and 24 doctoral
            degree recipients.
•           Ranked number 2 in the US in number of B.S. engineering degrees awarded to Hispanics (Black Issues in Higher
            Education, 2004).
•           Ranked number 2 nationally in number of bachelor’s degrees and number seven in master’s degrees awarded to Hispanic
            students (Black Issues in Higher Education, 2004).
•           Ranked number 1 nationally in number of B.S. graduates in science and engineering who earn Ph.D.s (IPEDS
            Completions, 00-01).
•           Ranked number 2 in enrollments of Hispanic women students (Hispanic Outlook, 2004).
•           Ranked number 3 among universities granting baccalaureate degrees to Hispanic students in elementary education
            (IPEDS Completions, 01-02).
•           The National Institutes of Health awarded UTEP and the UT Houston Health Science Center more than $4 million to
            establish the Hispanic Health Disparities Research Center at UTEP.




A Study of the Economic Impact of                                                                                                              Page 20
The University of Texas System
Economic Impacts by Region
Houston-Galveston



                                                                              Table 18
                                     Total Impact of The University of Texas System on the Houston-Galveston Region FY2004
                                                             Initial               Output Impact            Personal                Employment
    Institution                                        Direct Spending         (Initial + Recirculated) Income Impact*                Impact*

    The University of Texas
    Medical Branch at Galveston                                $1,205,094,634                   $1,786,422,917      $551,032,439      27,672
    The University of Texas
    Health Science Center at Houston                               546,199,309                      809,401,442      249,100,955      11,801
    The University of Texas
    M. D. Anderson Cancer Center                                 1,936,397,455                    2,969,900,423     1,004,858,050     40,114

    Total Impact                                             $3,687,691,398                   $5,565,724,782      $1,804,991,444      79,587
    *Employment includes full and part-time jobs. Personal income impact is included in the output impact.




Three University of Texas System health institutions are located within the ten-county Houston-Galveston Region.
These include the world-renowned The University of Texas M. D. Anderson Cancer Center, The University of Texas
Health Science Center at Houston and The University of Texas Medical Branch at Galveston. Together, these institutions
directly employ 32,160 people, more than the regional employment of Continental Airlines & Halliburton combined. In
FY2004, these institutions contributed to a combined impact of $5.6 billion and 79,587 total jobs as a result of operational
and capital expenditures and the expenditures of faculty/staff and nonresident students.

The Texas State Data Center estimated the population of this ten county area to be 5.1 million people in 2003. The oil and gas and
petrochemical industries have traditionally dominated the economy of Houston-Galveston. Other key industries include business
services, communications, aviation, electronics and transportation-related industries. The 2002 Economic Outlook prepared by the
Texas Comptroller’s Office identified several key industry clusters that show competitive advantage and growth potential for the
Gulf Coast region, of which Houston-Galveston is a part. This list includes several industries serving the business community such
as management and public relations, miscellaneous business services, legal services, accounting, auditing and other services, and
personnel services in addition to health care services. Many of these industries will require a highly skilled and educated workforce.
According to the 2000 US Census, 26 percent of people 25 years and older living in the Houston-Galveston Region have attained
at least a bachelor’s degree.

THE UNIVERSITY OF TEXAS MEDICAL BRANCH AT GALVESTON AT A GLANCE
•              First classes began in 1891.
•              Employed 1,258 faculty in fall of 2003.
•              Enrolled 2,121 students in fall of 2004.
•              UTMB Galveston graduated 582 people in the 2003/2004 school year, including 240 bachelor’s, 114 master’s, 38
               doctoral and 190 professional degree recipients.
•              Received 843,405 clinic visits in FY2003.
•              Totaled 194,642 patient bed days in FY2003.
•              Received 37,190 inpatient admissions in FY2003.
•              Top in awarding medical degrees for Hispanic Americans (Black Issues in Higher Education, 2003).
•              Ranked 7th in granting medical degrees for Blacks – only Texas university in top 10 (Black Issues in Higher Education, 2003).
•              Acute Care for Elders (ACE) named UTMB Galveston number 1 in patient satisfaction (Press Ganey Associates, 2002).
•              Obstetrics program unit given best rating (HealthGrade, 2003).
•              Correctional managed care ranked number 1 in quality; top honors in 5 categories (American Correctional Association;
               National Commission on Correctional Health Care, 1999).
•              Seven UTMB doctors were selected by 52,000 of their peers to be among the 2004 “Texas Super Doctors,” a project of
               Texas Monthly magazine.


A Study of the Economic Impact of                                                                                                              Page 21
The University of Texas System
Economic Impacts by Region
Houston-Galveston



THE UNIVERSITY OF TEXAS HEALTH SCIENCE CENTER AT HOUSTON AT A GLANCE
•         Founded in 1972 to administer several Houston biomedical and health-related units.
•         Employed 1,261 faculty in fall of 2003.
•         Enrolled 3,399 students in fall of 2004.
•         UTHSC-H graduated 844 people in the 2003/2004 school year, including 145 bachelor’s, 344 master’s, 105 doctoral and
          250 professional degree recipients.
•         Received 748,486 clinic visits in FY2003.
•         Totaled 5,906 patient bed days in FY2003.
•         Received 273,499 inpatient admissions in FY2003.
•         UTHSC-H is number 1 in child health and human development research among public health universities in Texas.
•         Ranked 5th in numbers of medical degrees awarded to Hispanic students (Black Issues in Higher Education, 2004).
•         School of Public Health in top 12 in nation (US News and World Report, 2002).
•         In 2003, UTHSC-H clinicians trained 745 medical and dental residents as they delivered care in more than 50 outpatient
          and inpatient sites, reflecting more than 748,000 encounters with patients.
•         In 2004, UTHSC-H provided $133.9 million in non-reimbursed patient care to citizens of Harris County.
•         The Dental Branch is one of the primary sources of charity care in the Greater Houston Area – providing over
          $971,000 of free dental care in FY2003.
•         The UTHSC-H School of Public Health has four regional campuses in Brownsville, Dallas, El Paso and San Antonio.


THE UNIVERSITY OF TEXAS M. D. ANDERSON CANCER CENTER AT A GLANCE
•         Founded in 1941.
•         Employed 1,133 faculty in fall of 2003.
•         Enrolled 70 students in fall of 2004.
•         UTMDACC graduated 30 people in the 2003/2004 school year, including 30 bachelor’s degree recipients.
•         Received 537,822 clinic visits in FY2003.
•         Totaled 146,673 patient bed days in FY2003.
•         Received 19,430 inpatient admissions in FY2003.
•         Ranked number 1 in the number of grants awarded and total amount of grants given by the National Cancer Institute.
•         Ranked number 4 in US in gynecology (US News and World Report, 2003).
•         Ranked number 10 in ear, nose and throat in US (US News and World Report, 2003).
•         130 faculty physicians honored as leading specialists (Best Doctors in America, 2002).
•         UTMDACC ranked among the nation’s top 2 cancer hospitals in US News and World Report’s “America’s Best
          Hospitals” survey since its inception 14 years ago, has been ranked number 1 in 2000, 2002, 2003 and 2004.
•         Since 1944, nearly 600,000 patients have turned to UTMDACC for cancer care in the form of surgery, chemotherapy,
          radiation therapy, immunotherapy or combinations of these and other treatments.
•         More than 900 clinical residents and fellows come to UTMDACC each year to receive specialized training in the
          investigation and treatment of cancer.
•         One of 3 facilities nationwide to offer proton therapy in 2006.




A Study of the Economic Impact of                                                                                         Page 22
The University of Texas System
Economic Impacts by Region
McAllen-Edinburg-Pharr



                                                                             Table 19
                                  Total Impact of The University of Texas System on the McAllen-Edinburg-Pharr Region FY2004
                                                                    Initial                      Output Impact             Personal      Employment
    Institution                                                Direct Spending               (Initial + Recirculated)   Income Impact*     Impact*

    The University of Texas-Pan American                          $187,555,647                     $250,788,908           $72,154,543      6,581

    *Employment includes full and part-time jobs. Personal income impact is included in the output impact.




The University of Texas - Pan American directly employs 3,025 people, one of the five largest employers in the
metropolitan area. In FY2004, this institution contributed to a total impact of $250.8 million and 6,581 total jobs as a
result of operational and capital expenditures and the expenditures of faculty/staff and nonresident students.

The McAllen-Edinburg-Pharr Region is located in South Texas. The Texas State Data Center estimated the population of this
metropolitan area (Hidalgo County) to be 635,851 people in 2003, 90 percent of whom are Hispanic. Key industries in McAllen-
Edinburg-Pharr include retail, health care, agriculture, oil and gas, and international trade-related businesses. Some of these
industries will require a highly skilled and educated workforce. According to the 2000 US Census, only 13 percent of people 25
years and older living in the McAllen-Edinburg-Pharr Region have attained at least a bachelor’s degree.

THE UNIVERSITY OF TEXAS - PAN AMERICAN AT A GLANCE
•              Founded in 1927 and became a part of the UT System in 1989.
•              Employed 697 faculty in fall of 2003.
•              Enrolled 17,030 students in fall of 2004.
•              UTPA graduated 2,394 people in the 2003/2004 school year, including 1,894 bachelor’s, 489 master’s and 11 doctoral
               degree recipients.
•              1st in nation in number of English language/literature and health profession baccalaureate degrees awarded to
               Hispanic students (Black Issues in Higher Education, 2004).
•              2nd in the nation in the number of bachelor’s degrees and fourth in the number of master’s degrees awarded to
               Hispanics, (Black Issues in Higher Education, 2004).
•              Ranked 4th in education and 5th in health master’s degrees awarded to Hispanic students (Black Issues in Higher Education,
               2004).
•              2nd in the nation in Hispanic Outlook’s selection of the 100 best US colleges for Hispanic students (2003).
•              Ranked in the top 10 in bachelor’s degrees awarded to Hispanic students in many academic programs (Black Issues in
               Higher Education, 2004): 2nd in Biological Sciences; 10th in Business and Marketing; 4th in mathematics and statistics.
•              68 percent of UTPA students who apply to medical schools are admitted compared to the state average of 38 percent.
•              According to the State Board for Educator Certification, UTPA ranks 1st in the nation in the number of bilingual
               education graduates.
•              On average, every year the Center for Entrepreneur and Economic Development (CEED) assists 50 South Texas
               businesses to acquire more than $8 million in resources for start-up and expansion.
•              It is the only university in the US to serve as a satellite office of INEGI, the Mexican equivalent of the US Census
               Bureau.




A Study of the Economic Impact of                                                                                                                  Page 23
The University of Texas System
Economic Impacts by Region
Midland-Odessa



                                                                              Table 20
                                       Total Impact of The University of Texas System on the Midland-Odessa Region FY2004
                                                                       Initial                      Output Impact             Personal      Employment
    Institution                                                   Direct Spending               (Initial + Recirculated)   Income Impact*     Impact*

    The University of Texas of the Permian Basin                      $51,414,276                      $71,945,468          $21,648,298       1,551

    *Employment includes full and part-time jobs. Personal income impact is included in the output impact.




The University of Texas of the Permian Basin is located in Midland-Odessa Region. UT Permian Basin directly employs
600 people, approximately the same amount as the Huntsman Corporation in the region. In FY2004, UT Permian Basin
contributed to the regional economy by adding $71.9 million and 1,551 total jobs as a result of operational and capital
expenditures and the expenditures of faculty/staff and nonresident students.

The Midland-Odessa Region is located in west Texas. The Texas State Data Center estimated the population of this area to be
242,291 people in 2003. Energy dominates Midland-Odessa’s economy, though some diversification has taken place over the
years. The 2002 Economic Outlook prepared by the Texas Comptroller’s Office identified several key industry clusters that show
competitive advantage and growth potential for the West Texas region, of which Midland-Odessa is a part. This list includes
agriculture and agricultural processing, high tech, communications, and oil and gas. Some of these industries will require a highly
skilled and educated workforce. According to the 2000 US Census, only 18 percent of people 25 years and older living in the
Midland-Odessa Region have attained at least a bachelor’s degree.

THE UNIVERSITY OF TEXAS OF                          THE     PERMIAN BASIN AT A GLANCE
•              Founded in 1969 as part of the UT System.
•              Employed 186 faculty in fall of 2003.
•              Enrolled 3,291 students in fall of 2004.
•              UTPB graduated 552 people in the 2003/2004 school year, including 443 bachelor’s and 109 master’s degree recipients.
•              National excellence award for online Master’s in Kinesiology (US Distance Learning Association, 2002).
•              National excellence award for online business administration program (UT TeleCampus partnership) (US Distance
               Learning Association, 2001).
•              Exemplary bilingual education teacher training program (US Department of Education, 2002).
•              Over 90 percent of faculty hold doctorates in their teaching fields.
•              More than 40 percent of students are from groups underrepresented in higher education.
•              Over 50 percent of UTPB’s undergraduates are first generation college students.
•              UTPB Center for Energy and Economic Diversification has recently received Congressional funding to study the
               geothermal energy potential of existing West Texas wells.




A Study of the Economic Impact of                                                                                                                     Page 24
The University of Texas System
Economic Impacts by Region
San Antonio



                                                                               Table 21
                                          Total Impact of The University of Texas System on the San Antonio Region FY2004
                                                                       Initial                      Output Impact             Personal      Employment
    Institution                                                   Direct Spending               (Initial + Recirculated)   Income Impact*     Impact*

    The University of Texas at San Antonio                          $380,531,198                       $599,698,899         $195,559,659      10,862
    The University of Texas
    Health Science Center at San Antonio                              458,100,969                       679,922,073          201,861,094      12,337

    Total Impact                                                   $838,632,167                    $1,279,620,972          $397,420,753      23,199
    *Employment includes full and part-time jobs. Personal income impact is included in the output impact.




Two University of Texas System institutions are located in the eight-county San Antonio Region: The University of Texas
at San Antonio and The University of Texas Health Science Center at San Antonio. Together, these institutions directly
employ 8,731 people, more than the employment of SBC Communications in the region. In FY2004, these institutions
contributed to a combined impact of $1.3 billion and 23,199 total jobs as a result of operational and capital expenditures
and the expenditures of faculty/staff and nonresident students.

The San Antonio Region is made up of eight counties in south central Texas, centering on Bexar County. According to the Texas
State Data Center 2003 population estimates, of the 1.8 million people living in the San Antonio Region, 52 percent are Hispanic.
The UT System institutions support the economic strengths of San Antonio by contributing to the advancement of key industries
within the region, including biomedical, military, tourism, and the financial service industries. Many of these industries will require a
highly skilled and educated workforce. According to the 2000 US Census, 22 percent of people 25 years and older living in the San
Antonio Region have attained at least a bachelor’s degree.

THE UNIVERSITY OF TEXAS AT SAN ANTONIO AT A GLANCE
•              Founded in 1969 as a part of the UT System.
•              Employed 969 faculty in fall of 2003.
•              Enrolled 26,175 students in fall of 2004.
•              UTSA graduated 3,686 people in the 2003/2004 school year, including 2,912 bachelor’s, 769 master’s and 5 doctoral
               degree recipients.
•              Ranked 1st in number of biological sciences degrees awarded to Hispanic students (Black Issues in Higher Education, 2004).
•              Ranked 2nd in number of business and education degrees awarded to Hispanic students; 6th in mathematics and in
               psychology (Black Issues in Higher Education, 2004).
•              Ranked 4th in number of undergraduate degrees awarded to Hispanic students (Black Issues in Higher Education, 2004).
•              Over 56 percent of UTSA’s students come from groups underrepresented in higher education.
•              UTSA’s Institute for Economic Development was a top performer in creating economic impact. (US Department of
               Commerce, Economic Development Administration, 2002).
•              Over the past five years, research funding at UTSA increased to more than $34 million ranking UTSA among the top
               3rd of domestic institutions of higher education receiving research funding.
•              UTSA is the 1st Texas university and one of 50 in the nation with the “Center for Academic Excellence in Information
               Assurance Education” designation by the National Security Agency.




A Study of the Economic Impact of                                                                                                                      Page 25
The University of Texas System
Economic Impacts by Region
San Antonio



THE UNIVERSITY OF TEXAS HEALTH SCIENCE CENTER AT SAN ANTONIO AT A GLANCE
•         Founded in 1959 as a part of the UT System.
•         Employed 1,405 faculty in fall 2003.
•         Enrolled 2,837 students in fall of 2004.
•         UTHSC-SA graduated 742 people in the 2003/2004 school year, including 323 bachelor’s, 10 master’s, 34 doctoral and
          279 professional degree recipients.
•         Received 1,110,429 clinic visits in FY2003.
•         Totaled 224,366 patient bed days in FY2003.
•         Designated a Hispanic Student Serving Institution.
•         Top 10 Liver Transplant program in the nation.
•         Only Tier One research Institution in the South Texas region, with more than $175 million in annual research awards.
•         Home of Palmaz Stent (designated “One of Ten Patents that Changed the World” and used in more than 2 million
          procedures each year); home of expandable Titanium Rib, first new spine treatment to receive FDA approval in 40 years.
•         Ranked in the top 15 percent of all research universities in the nation.
•         One of the top 50 hospitals in the country in five clinical specialties by US News and World Report.
•         The Health Science Center Dental School has been ranked number 1 among the nation’s dental schools by US News and
          World Report each year the magazine ranked dental schools since 1990.
•         The School of Allied Health added a campus extension in Laredo in 2001.
•         UTHSC-SA programs span South Texas, and with new buildings and programs in Harlingen, Laredo, and Edinburg.




A Study of the Economic Impact of                                                                                        Page 26
The University of Texas System
Economic Impacts by Region
Tyler-Longview-Marshall



                                                                            Table 22
                                Total Impact of The University of Texas System on the Tyler-Longview-Marshall Region FY2004

                                                                         Initial                    Output Impact             Personal      Employment
    Institution                                                     Direct Spending             (Initial + Recirculated)   Income Impact*     Impact*

    The University of Texas at Tyler                                   $80,307,464                     $118,714,998         $36,484,207       2,369

    The University of Texas Health Center at Tyler                     126,848,375                      179,954,448          51,444,332       3,517

    Total Impact                                                    $207,155,839                     $298,669,446          $87,928,539        5,886

     *Employment includes full and part-time jobs. Personal income impact is included in the output impact.




Two University of Texas System institutions are located within the Tyler-Longview-Marshall Region: The University of
Texas at Tyler and The University of Texas Health Center at Tyler. Together, these institutions employ 2,092 people,
more than the employment of The Trane Company in the region. In FY2004, these institutions contributed to a combined
impact of $298.7 million and 5,886 total jobs as a result of operational and capital expenditures and the expenditures of
faculty/staff and nonresident students.

The Texas State Data Center estimated the population of this region to be 444,105 people in 2003. Key sectors in the Tyler-
Longview-Marshall area include health care, government and business services. The 2002 Economic Outlook prepared by the
Texas Comptroller’s Office identified several key industry clusters that show competitive advantage and growth potential for the
Upper East Texas region, of which this region is a part. This list includes miscellaneous health services (such as audiologists, nurses,
paramedics, physician assistants, psychologists), general health practitioners, nursing and personal care facilities and, somewhat
further down the list, residential care and hospitals. Some of these industries will require a highly skilled and educated workforce.
According to the 2000 US Census, 19 percent of people 25 years and older living in the Tyler-Longview-Marshall area have attained
at least a bachelor’s degree.

THE UNIVERSITY OF TEXAS AT TYLER AT A GLANCE
•             Founded in 1971, became a part of the UT System in 1979.
•             Employed 291 faculty in fall of 2003.
•             Enrolled 5,326 students in fall of 2004.
•             UTT graduated 916 people in the 2003/2004 school year, including 720 bachelor’s and 196 master’s degree recipients.
•             MBA Online/UT TeleCampus named best in the nation (US Distance Learning Association, 2001).
•             M.S. Kinesiology Online/UT TeleCampus named best in the nation (US Distance Learning Association, 2002).
•             Tier 2 of Master’s level universities in the West (US News & World Reports, 2003 and 2004 editions).
•             According to the State Board of Educator Certification, UTT is a leader in the state for producing teachers who
              remain in teaching after five years.
•             UTT engineering seniors had the highest pass-rate percentage (95%) among Texas universities that had more than
              one student taking the National Council of Examiners for Engineering and Surveying Fundamentals Examination (one
              requirement for licensure as a Professional Engineer).




A Study of the Economic Impact of                                                                                                                     Page 27
The University of Texas System
Economic Impacts by Region
Tyler-Longview-Marshall



THE UNIVERSITY OF TEXAS HEALTH CENTER AT TYLER AT A GLANCE
•         Became a part of the UT System in 1977.
•         Employed 110 faculty in fall of 2003.
•         Saw 119,515 clinic visits in FY2003.
•         Provided 26,942 patient bed days in FY2003.
•         Totaled 3,765 inpatient admissions in FY2003.
•         In 2003, three NIH grants totaling more than $2.5 million were awarded to UTHC-T researchers to fund studies into
          lung injury, tuberculosis, and the transport and synthesis of cell proteins.
•         Occupational Medicine Training Program is only one of three civilian occupational medicine programs in Texas and
          approximately 40 in the nation.
•         Received approval from the Texas Legislature to establish the East Texas Center for Rural Geriatric Studies. The senior
          population in the East Texas community is growing faster than in other parts of the state.
•         Home to two medical residency programs in Family Practice and Occupational Medicine, and recently began a new
          Pharmacy Residency Program.




A Study of the Economic Impact of                                                                                           Page 28
The University of Texas System
Conclusion
UT System Benefits to Texas



                                                                       Table 23
                                Total Economic Impact of The University of Texas System on Regional Economies FY2004
                                                   Initial                Output Impact                Personal                         Employment
 Region                                       Direct Spending         (Initial + Recirculated)     Income Impact*                         Impact*
 Arlington-Fort Worth                                $402,122,707                      $616,820,092             $197,600,558               10,797
 Austin-Round Rock                                   1,830,017,594                    2,515,218,138              731,083,756               51,287
 Brownsville-Harlingen-San Benito                      109,797,458                      148,297,156               44,084,169                3,937
 Dallas-Plano-Irving                                 1,066,582,048                    1,598,219,989              515,287,735               23,004
 El Paso                                               323,960,651                      463,002,277              140,191,363                9,886
 Houston-Galveston                                   3,687,691,398                    5,565,724,782            1,804,991,444               79,587
 McAllen-Edinburg-Pharr                                187,555,647                      250,788,908               72,154,543                6,581
 Midland-Odessa                                         51,414,276                        71,945,468              21,648,298                1,551
 San Antonio                                           838,632,167                    1,279,620,972              397,420,753               23,199
 Tyler-Longview-Marshall                               207,155,839                      298,669,446               87,928,539                5,886
 Aggregate                                          $8,704,929,784                     $12,808,307,228       $4,012,391,158              215,715
 *Employment includes full and part-time jobs. Personal income impact is included in the output impact.




This study utilizes conservative assumptions to estimate the                               mission and enabling the UT System to engage in the many
short-term economic impacts of UT System institutions                                      other public services benefiting all of Texas.17
on their host regions. Short-term economic impacts are
significant even before considering the long-term economic                                 LEVERAGE THROUGH MULTIPLIERS OF RESOURCES IN
impacts that result from improving the human capital of                                    REGIONAL ECONOMIES
Texas. State appropriations that contribute to short-term
                                                                                           As reported above, considering the additional indirect and
impacts are leveraged within local communities through: the
                                                                                           induced effects of the $7.8 billion institutional budgets and
various stakeholders of each institution, expenditures made by
                                                                                           $974.9 million from non-resident student direct spending,
businesses serving UT System institutions, funds from outside
                                                                                           the total economic impact of the 15 institutions and
resources and through the future earnings of UT System
                                                                                           administration on the respective host economies was $12.8
graduates.
                                                                                           billion in additional economic output during FY2004. Of the
                                                                                           total economic impact, $8.7 billion, or 68 percent was the
LEVERAGE OF          THE    STATE’S DIRECT INVESTMENT                                      initial direct spending of the institutions, faculty/staff, and
The UT System expenditures for FY2004 totaled $7.8 billion                                 nonresident students. An additional $4.1 billion was spent
from all sources. State appropriations represented $1.6                                    in host regions as dollars re-circulated. For every dollar in
billion or about 20 percent of this total and play a critical                              initial spending, an average of 44 additional cents was
role in funding the core educational mission of the UT                                     spent within host regions.
System institutions.16
                                                                                           Personal income includes salary, wage and proprietor income,
The balance of the FY2004 expenditures include a vast array                                which are direct money impacts to people’s pocketbooks. In
of contracted services affecting all Texans. These services                                its host regions, The University of Texas adds $4 billion
including patient care through UT System affiliated hospitals                              in personal income as a result of the initial spending of the
and clinics; contracts and research grants with the Federal                                institution, faculty, staff and nonresident students.
government, businesses and nonprofits; services to students
such as housing and food, parking, recreation in addition to                               16
                                                                                              Fast Facts 2004. The University of Texas System Pamphlets.
education. The balance of FY2004 expenditures also includes                                Austin: 2004.
gifts received from individual donors, often conditioned
                                                                                           17
                                                                                              The University of Texas System Office of the Chancellor. The
                                                                                           University of Texas System Accountability and Performance
to the area of philanthropic interest by the donor. While                                  Report, 2004-2005. Austin: 2004, Section IV Organizational
state appropriations constitute only 20 percent of the total                               Efficiency and Productivity, p 3, Table IV-1.
expenditures, their role is vital to supporting the educational


A Study of the Economic Impact of                                                                                                                   Page 29
The University of Texas System
Conclusion
UT System Benefits to Texas



                                                                   Table 24
                               On-Campus and Off-Campus Jobs that Exist Due to Institution-Related Spending FY2004
           Institution/Region                                        On-Campus Jobs     Off-Campus Jobs     Total Employment*
           UT Arlington                                                    4,537             6,260                   10,797
           Total Impact, Arlington-Fort Worth                              4,537             6,260                   10,797
           UT Austin                                                     21,673             27,450                   49,123
           System Administration                                            546              1,618                    2,164

           Total Impact, Austin- Round Rock                              22,219             29,068                   51,287
           UT Brownsville/Texas Southmost College                          1,758             2,179                    3,937
           Total Impact, Brownsville-Harlingen-San Benito                  1,758             2,179                    3,937
           UT Dallas                                                       3,126             3,148                    6,274
           UT Southwest Medical Center - Dallas                            5,784            10,946                   16,730
           Total Impact, Dallas-Plano-Irving                               8,910            14,094                   23,004
           UT El Paso                                                      4,003             5,883                    9,886
           Total Impact, El Paso                                           4,003             5,883                    9,886
           UT Medical Branch - Galveston                                 13,340             14,332                   27,672
           UT Health Science Center-Houston                                5,528             6,273                   11,801
           UT M. D. Anderson Cancer Center                               13,292             26,822                   40,114
           Total Impact, Houston-Galveston                               32,160             47,427                   79,587
           UT Pan American                                                 3,025             3,556                    6,581
           Total Impact, McAllen-Edinburg-Pharr                            3,025             3,556                    6,581
           UT Permian Basin                                                 600                951                    1,551
           Total Impact, Midland-Odessa                                     600                951                    1,551
           UT San Antonio                                                  3,752             7,110                   10,862
           UT Health Science Center - San Antonio                          4,979             7,358                   12,337
           Total Impact, San Antonio                                       8,731            14,468                   23,199
           UT Tyler                                                         829              1,540                    2,369
           UT Health Center - Tyler                                        1,263             2,254                    3,517
           Total Impact, Tyler-Longview-Marshall                           2,092             3,794                    5,886
           Total Impact on Regional Economies                            88,035            127,680               215,715
           *Employment includes full and part-time jobs.




LEVERAGE THROUGH MULTIPLIERS OF JOBS IN REGIONAL ECONOMIES
These output and income impacts are better understood when translated to the number of jobs added or supported in a region
as a result of the presence of a University of Texas institution. The combined employment impact of all 15 institutions on
their host regions was 215,715. This includes the on-campus employment of 88,035 and the off-campus employment of 127,680
supported by the additional rounds of economic impact.

On average, for every on-campus job, an additional 1.5 jobs are added because of institution-related spending.




A Study of the Economic Impact of                                                                                               Page 30
The University of Texas System
Conclusion
UT System Benefits to Texas



                                                                  Table 25
                                              Total Economic Impact from UT Export Sales FY2004

                                                             Direct Expenditures      Average                 Total
                                                                 ($millions)          Multiplier        Estimated Impact


                   R&D Federal Funds                               $975.8               1.53                $1,493.0


                   Non-resident students spending


                              8,284 out-of-state students            87.5


                              15,786 foreign students               166.8


                              Out-of-state/foreign tuition          303.0


                              Sub-total                            $557.3                1.5                   835.5


                   Total Impact                                                                            $2,328.0




LEVERAGE THROUGH EXPORT SALES TO EXTERNAL                                   are influenced by more than one year in the UT System, it is
CUSTOMERS                                                                   also true that the state’s appropriations for any given year
                                                                            benefits all the students regardless of their classification.
Another viewpoint on the state’s investment is to look at the
resultant “exports” of educational and research services to                 In addition to the UT System institutional Direct Spending
out-of-state customers. This brings in outside new resources,               and resultant Output, Personal Income, and Employment
which, absent UT System activities, could very well go to non-              multipliers in the respective host economies, as well as the
Texas universities. Consequently, the state’s $1.6 billion                  exported educational and research services to customers out-
direct investment brings in a total economic impact of                      of-state, we should not ignore the effect of additional work-life
$2.3 billion from out-of-state resources alone.                             earnings of college graduates on the state’s economy.

                                                                            The state is like any organization with limited resources
                                                                            and ceaseless demands against those resources. They make
LEVERAGE THROUGH FUTURE PRODUCTIVITY GAINS OF                               investment decisions using a variety of criteria, some of which
GRADUATES                                                                   they borrow from the corporate world. A decision tool widely
Finally, perhaps the most compelling demonstration of the                   used in private industry is the Net Present Value (NPV) model,
cost-benefit ratio of the state’s return on its UT System                   which compares the cost of an investment to the resulting
investment for one year is an estimate of the Net Present                   future cash benefits resulting from the investment.A positive
Value (NPV) of the future additional earnings by graduates                  NPV (the present value of the future benefits exceeds the
as a measure of future increased productivity to the Texas                  cost of the investment) indicates that the project is financially
economy.                                                                    sound.

Other university impact studies have used variations of this                If the state’s appropriations to higher education are viewed
theme and even calculated the indirect and induced impacts                  as an investment and the incremental work-life earnings of
of these future work-life earnings. We have chosen a more                   its graduates as the resulting benefits (those future earnings
conservative approach and are reporting the present value                   result in additional indirect and induced spending as well as
of the estimated future, work-life (over 40 years) earnings                 produce indirect and induced employment), we can determine
as reported by the US Census Bureau in July 2002, and are                   the financial soundness of the state’s investment. An estimate
comparing this present value to the amount appropriated for                 of the UT System’s aggregate incremental earnings
the UT System for FY2004. Although students’ future earnings                impact from its 34,897 degrees awarded in FY2004 alone



A Study of the Economic Impact of                                                                                                    Page 31
The University of Texas System
Conclusion
UT System Benefits to Texas



                                                                            Table 26
                                                        UT System’s Aggregate Incremental Earnings FY2004
                                                           UT System                          Incremental Earnings                    Total Work-Life
          Educational Attainment                         Graduates 2004                           per Graduate*                    Incremental Earnings


          Bachelor’s                                            23,268                                $1,039,490                     $24,186,853,320


          Master’s                                               9,030                                 1,405,806                      12,694,428,180


          Professional                                           1,084                                 3,621,110                       3,925,283,240


          Doctoral                                               1,515                                 2,516,528                       3,812,539,920


          Total                                                34,897                               $8,582,934                       44,619,104,660


          x 86% of graduates working in Texas                                                                                         38,372,430,007


          Total UT System State Appropriations FY2004                                                                                $1,588,000,000
          *Incremental earnings are additive to a typical high school graduate lifetime earnings of $1,364,326 in present terms.




would be $44.6 billion for all graduates. Assuming that 86                                      the incremental lifetime earnings for a bachelor’s degree
percent of graduates remain in Texas, a total incremental                                       recipient would typically add over $1 million beyond
earnings impact of $38.4 billion would result.                                                  the baseline average for a high school degree only. The
                                                                                                College Board estimates that on average, total expenses
Comparing the total work-life incremental earnings with the                                     (tuition, fees, etc.) per year at a public four-year institution
state’s FY2004 appropriations, we see that this public version                                  were $14,600 for resident students in FY2004. If taken as an
of NPV would exceed $43 billion for all UT System graduates                                     approximation of a family’s investment in a bachelor’s degree,
in FY2004. The ratio of the state’s investment of $1.6
                                                                                                the investment would be $58,600 for a degree completed in
billion to the $38.4 billion of incremental earnings is 1 to
24. In other words, every $1 the state invests in UT higher                                     four years, $73,200 for completion in five years, and $87,800
education acts as a catalyst for, and ultimately results                                        for completion in six years. While these figures would vary,
in, an additional $24 of gross, work-life incremental                                           depending on types of financial aid, region, opportunity cost,
earnings that go into the Texas economy.                                                        and many other individual factors, the total investment is still
                                                                                                comparatively small compared with a college graduate’s
Looking at this investment from an individual standpoint,                                       estimated lifetime benefit in earnings.




A Study of the Economic Impact of                                                                                                                         Page 32
The University of Texas System
Scope and Limitations/ Future Study Topics




Only centralized financial and enrollment reports aggregating data from all institutions have been used so far, and the institutions
have not yet had the opportunity to contribute their individual “rest of the story” items to share, broaden and exemplify the
numerous and unique ways in which they impact their region’s as well as the state’s economy. When these additional impacts are
more fully explored, surely a significant increase in the total economic, employment and quality-of-life impacts will be revealed.

Additional categories of economic impact to be considered in the future include:

•    Visitor spending evidenced by an inventory of institution visitors and typical expenditures, such as non-credit students and
     attendees to conferences, museums, festivals, athletics, arts and culture events held of all types, with total attendance, costs and
     duration, surveys of students and parents regarding pre-college and on-going visits of family and friends, and identifying the
     out-of-town proportions of all visiting activities.

•    Research and development additional impacts, such as industry productivity gains due to innovations, technology transfer
     and commercialization, spin-off industry, intellectual property interests and revenues to universities, and industry attraction
     benefits; (thus far R&D has been assessed as expenditure effects only).

•    Workforce and industry implications to meet the employment demand levels for Texas, with graduates educated to fill the
     knowledge economy jobs supporting economic diversification, also continuing education to re-tool workers’ skills, and
     scenarios of university-level services versus growth consequences to produce an adequate future workforce.

•    Public services benefits via outreach and extension programs, the multitude of health interventions, teacher preparation and
     partnerships with schools, volunteerism by faculty and staff, service-learning roles of students, facilities use, and state and
     local tax benefits, as well as cost avoidance due to lower incidences of unemployment, illness and crime associated with higher
     education.

•    Quality of life enhancements due to university arts, culture, athletics and recreational activities, access to expertise, free publicity
     and prestige for communities.




A Study of the Economic Impact of                                                                                                    Page 33
The University of Texas System
Appendix 1
Methodology



EDUCATIONAL INSTITUTIONS                                               and federal pass-throughs. Salary and wage-related costs were
Caffrey and Isaacs (1971) provide the basic primer for                 analyzed separately under faculty and staff spending. Federal
evaluating the regional economic impacts of an educational             pass-throughs included expenditures for programs at other
institution.18 They estimate the direct expenditures in several        institutions (between other universities or state agencies).
broad categories including: 1) expenditures for operations             While these are important programs, many times they occur
and maintenance; 2) capital expenditures; 3) faculty and               outside of the local region. In order to remain conservative,
staff spending; 4) student spending; and 5) expenditures of            we did not include these expenditures within the analysis.
visitors. Data are collected from various surveys, interviews,         Model local purchase coefficients were utilized for each sector
and financial reports. Most other reliable studies of university       or aggregated sector with the exception of the sectors allocated
impacts follow along these same lines with modifications.19            to travel expenditures.22 For travel expenditures, an aggregated
In this analysis, we separated the expenditures of each                sector that includes 391 (air transportation), 395 (transit and
university into four classes: 1) expenditures for operations           ground transportation) and 456 (travel arrangement services)
and maintenance; 2) capital expenditures); 3) faculty and staff        was utilized with a local purchase coefficient of 25 percent.
spending; and 4) student spending. Because of time limitations         Other categories of expense and the related IMPLAN sector
and the vast differences in the types of visitors (a visitor           include: Professional Fees and Services (aggregate of sectors
to a UT Austin football game versus a physician attending              423-424 and 437-460 – various professional services); Materials
a conference at UTMB Galveston), we did not attempt to                 and Supplies (aggregate of sectors 403-406, 408-412 – various
estimate the impact of visitor spending on the local region.           retailers); Utilities (sector 498-State and Local Government
                                                                       Utilities); Telecom (sector 422-telecommunications); Repairs
The purpose of this study was to provide an estimate of the            and Maintenance (aggregate of sectors 453, 458, 460, 484-486
short run economic impacts on the regional economies of                – various repair services); Rentals and Leases (aggregate of
each institution of the UT System. For our analysis, we used           sectors 432, 434, and 435 - various rental services); Printing
the Metropolitan Statistical Areas as defined in December 2003         (sector 139 - commercial printing); and Other and Scholarships
with two exceptions: Midland and Odessa were combined for              and Fellowships (sector 462 - colleges and universities).
our analysis and Tyler-Longview-Marshall were considered a
region. The first part of our analysis required us to estimate
the direct expenditures within the region. These direct impacts        CAPITAL EXPENDITURES
were measured for the 2004 fiscal-year comprising September            Capital expenditure data were derived from the FY2004
2003, through August 2004. The data for estimating the                 financial report provided by the UT System for each
economic impacts of the UT System were derived from                    institution.23 Data included expenditures on construction,
financial statements, budget data and other information                equipment, vehicles and books/art. Construction expenditures
provided by the business office of the UT System.                      were taken only from data for “construction in-progress”
                                                                       during the year. These expenditures were allocated to
The multiplier effect was then measured for each one of                IMPLAN sector 38 (Commercial and Institutional Buildings).
these direct economic impacts through the IMPLAN Input/                Other capital expenditures were allocated to IMPLAN sectors
Output model.20 A widely used I/O model first developed by             in the following ways: equipment to sector 412 (non-store
the United States Forest Service in 1979, and now marketed             retailers); vehicles to 401 (motor vehicle and parts dealers);
by Minnesota IMPLAN Group (MiG, Inc.). The latest data                 and books/art to 415 (book publishers). Ideally, an analysis
(2002) were used for this report. The model utilizes benchmark         of purchases would provide a more detailed allocation of
tables provided by the Bureau of Economic Analysis as well             expenditures to sectors as well as provide an overall estimate
as other statistical data to model transactions occurring within       of local versus non-local expenditures. The IMPLAN model
a region, state or the nation. IMPLAN is, in a sense, a general        estimates local and non-local expenditures based on the
accounting system of the economic transactions taking place            underlying industry makeup of each region and the propensity
between industries, businesses (universities), and consumers in        to buy across industries (local purchase coefficients). The
an economy and estimates the impacts on total output (sales),          model local purchase coefficients were applied to each sector
personal income, taxes, and employment. By expanding their             in the analysis. The direct expenditures for capital were then
analysis beyond the direct impacts, IMPLAN provides a more             modeled in IMPLAN to estimate the additional impacts to the
complete picture of the economic effects of transactions.              regional economy.
The latest available economic data from IMPLAN (2002) were
used to estimate the indirect and induced impacts of the UT            FACULTY AND STAFF SPENDING
System institutions on their regions.
                                                                       In order to estimate the economic impacts of faculty and
                                                                       staff spending, the direct salary and wage expenditures were
OPERATIONAL EXPENDITURES                                               first extracted from the FY2004 financial reports. These total
Operational expenditures were derived from the FY2004                  expenditures were then discounted by 15 percent to account
financial reports provided by the UT System for each                   for disposable income. The remaining amount was then
institution.21 All categories were allocated to single or aggregated   applied to the median household range for the selected MSA.
IMPLAN sectors except for salaries and related costs, bad debt         IMPLAN models households as institutions (basically like an




A Study of the Economic Impact of                                                                                              Page 34
The University of Texas System
Appendix 1
Methodology



industry) based upon benchmarks of consumer expenditures          expenditure of goods and services by students originating
provided by the Bureau of Labor Statistics. Indirect and          from outside the institution’s home region. This represents
induced expenditures were derived from the model results.         new money coming into the region.

STUDENT EXPENDITURES                                              These direct expenditures were then allocated to IMPLAN
                                                                  sectors for estimating the indirect and induced impacts of
Student spending was estimated in the following manner.           student expenditures. The resulting figures give an estimate
First, the number of students for Fall 2003 was obtained from     of the impact of student spending on the regional economy
the UT System office. Students were classified as originating     from students originating from elsewhere. These expenditures
from within the host region of the institution or from outside    represent new resources coming into the local economies.
of the region. While an argument can be made that had the
institution not been located within the region, prospective       18
                                                                     Caffrey,John, Herbert H. Isaacs. Estimating the Impact of
students would have been forced to move elsewhere to attend       a College or University on the Local Economy. Washington,
school, we assumed that only the students who moved into          D.C.: American Council on Education, 1971.
the local region to attend school would have an impact on the     19
                                                                      Studies that have used similar methodologies with the
local economy since they are bringing new money into the          IMPLAN Input/Output Model have included: Engines of
region to spend on local goods and services. By multiplying       Economic Growth: The Economic Impact of Boston’s Eight
the number of out-of-region students by average expenditures,     Research Universities on the Metropolitan Boston Area,
we were able to estimate the total expenditures spent within      Appleseed, 2003; The Economic Impact of the University
the region.                                                       of South Carolina System, Division of Research, The Darla
                                                                  Moore School of Business at the University of South Carolina,
The financial aid office of each institution is required by       June 2000; The Economic Impact of University System of
the US Department of Education to estimate student                Georgia Institutions on their Regional Economies, March
costs based upon a nine-month school year. While these            2002, by Sharon Duhart of the Board of Regents Office
statistics give reasonable estimates of cost, there is a degree   of Economic Development; and the Economic Impact of
of inconsistency in how each campus derives its estimates,        Tarleton State University by S. Hussain Ali Jafri, Jay Dudley
so this study balanced these with statistics on consumer          and David Buland, May 9, 2000.
expenditures provided by the Bureau of Labor Statistics.24        20
                                                                     Minnesota IMPLAN Group, Inc., IMPLAN System (data
First, the average estimated expenditures for students at         and software), 1725 Tower Drive West, Suite 140, Stillwater,
all UT System institutions were determined to be $10,568          MN 55082 www.implan.com. The 2002 Data was used for this
per academic year ($1,174 per month), which represent             analysis (the most current available).
only personal expenses above and beyond those paid to the         21
                                                                     Expenditures are detailed on schedule C-2 of these reports.
university for tuition, fees, books, etc. These estimates were    22
                                                                     Local Purchase Coefficients estimate the amount of an
then compared to the consumer expenditure data for the            industry’s needs that can be supplied by local industries based
lowest income individual for the southern region in the Bureau    upon the makeup of the regional economy. Higher local
of Labor Statistics’ estimates. Spending in specific categories   purchase coefficients indicate that more items are purchased
was adjusted up or down. For instance, expenditures for           from local suppliers.
books were adjusted upward to reflect student costs while         23
                                                                     Expenditures are detailed on schedule B-11 of these
expenditures for education (tuition and fees) were changed        reports.
to zero since these expenditures are already reflected in the     24
                                                                     Bureau of Labor Statistics, Consumer Expenditure data for
operational expenditures of the University. Allocation of         2000-2003.
expenditures into specific expense categories were estimated      25
                                                                     Similar methods were used for economic impact studies
based upon the proportional representation of expenditures in     for the University of Georgia and University of Wisconsin
the Bureau of Labor Statistics’ data (after the aforementioned    Systems (The Economic Impact of University System of
adjustments were made). These expenditure estimates are           Georgia Institutions on Their Regional Economies, March
considered conservative not only because of the methods by        2002 by Sharon Duhart; and University of Wisconsin System’s
which they are derived, but because of the fact that students     Economic Contribution to Wisconsin by Dennis K. Winters
may attend college year round and/or remain in the region         and William A. Strang, Sept 2002).
during the summer, thus impacting the regional economy.25
By multiplying the number of out-of-region students by
the estimated expenditures, we have a total estimated direct




A Study of the Economic Impact of                                                                                         Page 35
The University of Texas System
Appendix 2
Educational Attainment and Work-Life Earnings



Census data show a positive correlation between higher            Limitations
earnings and educational attainment. This report uses data        •       Selecting only resident, noninstitutional population
compiled and reported in The Big Payoff: Educational Attainment           with earnings excludes a segment of adults with less
and Synthetic Estimates of Work-Life Earnings by Jennifer                 education. This results in a higher estimate of
Cheesman Day and Eric C. Newburger for the US Department                  the earnings of people with less education, and
of Commerce, Economics and Statistics Administration, US                  consequently, may understate the difference in
Census Bureau in July 2002.                                               work-life earnings between workers with less
                                                                          education and workers with more.
They determined “synthetic” estimates of work-life earnings       •       Their report does not cover many other factors
from the working population’s 1-year annual earnings and                  which affect earnings:
summing their age-specific average earnings for people ages                o   College major
25 to 64 years.                                                            o   Continuity of occupation
                                                                           o   Motivation and effort of individuals
The resulting totals represent what individuals with the same              o   Occupation
educational level could expect to earn, on average, in 1999                o   Gender
dollars (we used a CPI adjustment factor of 2.6 percent per                o   Marital status
year to adjust their figures to 2004), during a hypothetical               o   Family responsibilities
40-year working life.” They defined a typical work-life as the             o   Income requirements
period from age 25 through age 64. The authors acknowledge                 o   Area of residence
that some people stop working at ages other than 64, or start              o   Local job markets
working before age 25, but believe that this range of 40 years    •        Statistics from sample surveys are subject to
provides a reasonable benchmark for many people.                           sampling and non-sampling error.

ASSUMPTIONS AND LIMITATIONS                                       An estimate of the UT System’s aggregate incremental
As with any national-level survey and accompanying statistical    earnings impact from its 34,897 degrees awarded in FY2004
analysis, The Big Payoff: Educational Attainment and Synthetic    alone would be $44.6 billion overall, and considering the
Estimates of Work-Life Earnings uses a number of assumptions      86 percent of graduates staying to work in Texas would be
and is subject to limitations.                                    $38.4 billion (Table 26). In contrast to the total UT System
                                                                  State appropriations for FY2004 of $1.6 billion, this gain in
Assumptions                                                       productivity for the graduating class’s lifetime represents a
•      The estimates assume current cross-sectional               return to Texas exceeding 24 to 1.
       earnings are representative of the patterns in future
       earnings.                                                  Figures are averages, and represent incremental earnings
•      The average earnings of individuals in each age            potential over and above a typical high-school degree recipient
       group have been based on all members within an             with a typical lifespan and career, which by comparison
       age group without regard to work history, past             would earn $1,364,326 in 2004 dollars. As an example, a
       performance, or other factors which may affect pay.        2004 graduate with a master’s degree would earn $1,405,806
•      The estimates do not account for any future                above the $1,364,326 that he or she would have earned with
       productivity gains in the economy, and therefore,          just a high school diploma. The total earnings over his or her
       the estimates may be low.                                  forty-year work-life would be $2,770,132, or about $69,253 per
•      Their report assumes uninterrupted labor force             year.
       participation from age 25 to 64.
•      The earnings are based on currently surviving              This analysis does not differentiate among specific degree fields
       workers. Past research indicates that due to a             of study or granting institutions. For example, future surveying
       differential mortality by education, these work-life       of UT graduates could better determine differences between
       estimates may be inflated differentially by education      careers (Finance, English, Science) and among institutions.
       level.




A Study of the Economic Impact of                                                                                          Page 36
The University of Texas System
Appendix 3
Regions Used in Study



                                                    Table 27
                                        Component Counties of Local Regions

 Region                                              Component Counties                           Institution County



 Arlington-Fort Worth                             Johnson, Parker, Tarrant, Wise                       Tarrant


                                                       Bastrop, Caldwell,
 Austin-Round Rock                                   Hays, Travis, Williamson                           Travis



 Brownsville-Harlingen-San Benito                           Cameron                                   Cameron


                                                   Collin, Dallas, Delta, Denton,
 Dallas-Plano-Irving                              Ellis, Hunt, Kaufman, Rockwall                        Dallas



 El Paso                                                     El Paso                                   El Paso


                                               Austin, Brazoria, Chambers, Ft. Bend,
 Houston-Galveston                  Galveston, Harris, Liberty, Montgomery, San Jacinto, Waller         Harris



 McAllen-Edinburg-Pharr                                      Hidalgo                                   Hidalgo



 Midland-Odessa                                           Ector, Midland                                Ector


                                                   Atascosa, Bandera, Bexar,
 San Antonio                               Comal, Guadalupe, Kendall, Medina, Wilson                    Bexar



 Tyler-Longview-Marshall                       Gregg, Harrison, Rusk, Smith, Upshur                     Smith




A Study of the Economic Impact of                                                                                Page 37
The University of Texas System
Appendix 4
Total Economic Impacts of UT System Institutions on Regional Economies



                                                                      Table 28
                      Total Economic Impacts of The University of Texas System Institutions on their Regional Economies FY2004
                                                                        Initial                     Output Impact                      Personal                     Employment
 Region/Institutions                                               Direct Spending              (Initial+Recirculated)              Income Impact*                    Impact*

 UT Arlington
 Operations                                                            $69,556,004                    $112,259,554                    $41,789,450                        5,928
 Capital                                                               $49,367,016                     $84,817,485                    $31,964,486                          910
 Faculty/Staff Expenditures                                           $138,025,486                    $193,017,834                    $48,693,699                        1,424
 Student Expenditures                                                 $145,174,201                    $226,725,219                    $75,152,923                        2,535
 Subtotal                                                             $402,122,707                    $616,820,092                   $197,600,558                       10,797
 Total Impact, Arlington-Fort Worth
 Operations                                                            $69,556,004                    $112,259,554                    $41,789,450                        5,928
 Capital                                                               $49,367,016                     $84,817,485                    $31,964,486                          910
 Faculty/Staff Expenditures                                           $138,025,486                    $193,017,834                    $48,693,699                        1,424
 Student Expenditures                                                 $145,174,201                    $226,725,219                    $75,152,923                        2,535
 Total                                                                $402,122,707                    $616,820,092                   $197,600,558                       10,797
 UT Austin
 Operations                                                           $385,012,413                    $566,774,370                   $214,439,165                       33,258
 Capital                                                              $178,115,157                    $230,792,812                    $54,278,563                        1,601
 Faculty/Staff Expenditures                                           $771,536,874                    $998,990,129                   $230,132,393                        6,898
 Out-of-Region Student Expenditures                                   $440,169,019                    $639,732,986                   $205,318,162                        7,366
 Subtotal                                                           $1,774,833,463                  $2,436,290,297                   $704,168,283                       49,123
 System Administration
 Operations                                                            $30,956,419                     $47,068,415                    $18,876,715                        1,935
 Capital                                                                 $3,458,743                      $4,987,542                     $1,832,825                           43
 Faculty/Staff Expenditures                                            $20,768,969                     $26,871,884                      $6,205,933                          186
 Student Expenditures                                                              $0                              $0                             $0                           0
 Subtotal                                                              $55,184,131                     $78,927,841                    $26,915,473                        2,164
 Total Impact, Austin-Round Rock
 Operations                                                           $415,968,832                    $613,842,785                   $233,315,880                       35,193
 Capital                                                              $181,573,900                    $235,780,354                    $56,111,388                        1,644
 Faculty/Staff Expenditures                                           $792,305,843                  $1,025,862,013                   $236,338,326                        7,084
 Student Expenditures                                                 $440,169,019                    $639,732,986                   $205,318,162                        7,366
 Total                                                             $1,830,017,594                $2,515,218,138                     $731,083,756                         51,287
 *Direct employment by the UT System institutions included in the operations impact. Employment includes full and part-time jobs. Personal income impact is included in the output
 impact.




A Study of the Economic Impact of                                                                                                                                                  Page 38
The University of Texas System
Appendix 4
Total Economic Impacts of UT System Institutions on Regional Economies

                                                                         Initial                     Output Impact                      Personal                    Employment
 Region/Institutions                                                Direct Spending              (Initial+Recirculated)              Income Impact*                   Impact*
 UT Brownsville/Texas Southmost College
 Operations                                                              $41,958,039                    $62,294,934                     $24,961,604                      3,040
 Capital                                                                 $14,407,181                    $19,161,194                      $4,269,026                         226
 Faculty/Staff Expenditures                                              $44,478,185                    $54,371,719                     $10,966,512                         484
 Student Expenditures                                                      $8,954,053                   $12,469,309                      $3,887,027                         187
 Subtotal                                                               $109,797,458                   $148,297,156                     $44,084,169                      3,937
 Total Impact, Brownsville-Harlingen-San Benito
 Operations                                                              $41,958,039                    $62,294,934                     $24,961,604                      3,040
 Capital                                                                 $14,407,181                    $19,161,194                      $4,269,026                         226
 Faculty/Staff Expenditures                                              $44,478,185                    $54,371,719                     $10,966,512                         484
 Student Expenditures                                                      $8,954,053                   $12,469,309                      $3,887,027                         187
 Total                                                                  $109,797,458                   $148,297,156                     $44,084,169                      3,937
 UT Dallas
 Operations                                                              $49,521,367                    $78,608,269                     $28,936,420                      3,870
 Capital                                                                 $21,104,802                    $34,869,292                     $13,413,115                         488
 Faculty/Staff Expenditures                                             $102,467,750                   $142,658,007                     $37,373,461                         967
 Student Expenditures                                                    $59,432,823                    $92,109,577                     $30,972,677                         949
 Subtotal                                                               $232,526,742                   $348,245,145                   $110,695,673                       6,274
 UT Southwestern Medical Center - Dallas
 Operations                                                             $224,858,798                   $355,857,535                   $133,001,084                       9,276
 Capital                                                                $133,367,616                   $229,443,673                     $95,843,191                      2,872
 Faculty/Staff Expenditures                                             $461,782,813                   $642,904,882                   $168,427,847                       4,358
 Student Expenditures                                                    $14,046,079                    $21,768,754                      $7,319,940                         224
 Subtotal                                                               $834,055,306                $1,249,974,844                    $404,592,062                      16,730
 Total Impact, Dallas-Plano-Irving
 Operations                                                             $274,380,165                   $434,465,804                   $161,937,504                      13,146
 Capital                                                                $154,472,418                   $264,312,965                   $109,256,306                       3,360
 Faculty/Staff Expenditures                                             $564,250,563                   $785,562,889                   $205,801,308                       5,325
 Student Expenditures                                                    $73,478,902                   $113,878,331                     $38,292,617                      1,173
 Total                                                                $1,066,582,048                $1,598,219,989                    $515,287,735                      23,004
 UT El Paso
 Operations                                                              $82,454,454                   $124,962,864                     $47,040,218                      6,265
 Capital                                                                 $33,618,070                    $51,639,382                     $16,940,001                         671
 Faculty/Staff Expenditures                                             $106,002,804                   $136,596,593                     $29,795,637                      1,089
 Student Expenditures                                                   $101,885,323                   $149,803,438                     $46,415,507                      1,861
 Subtotal                                                               $323,960,651                   $463,002,277                   $140,191,363                       9,886
 Total Impact, El Paso
 Operations                                                              $82,454,454                   $124,962,864                     $47,040,218                      6,265
 Capital                                                                 $33,618,070                    $51,639,382                     $16,940,001                         671
 Faculty/Staff Expenditures                                             $106,002,804                   $136,596,593                     $29,795,637                      1,089
 Student Expenditures                                                   $101,885,323                   $149,803,438                     $46,415,507                      1,861
 Total                                                                 $323,960,651                  $463,002,277                           $140,191,363                  9,886
 *Direct employment by the UT System institutions included in the operations impact. Employment includes full and part-time jobs. Personal income impact is included in the output
 impact.




A Study of the Economic Impact of                                                                                                                                                 Page 39
The University of Texas System
Appendix 4
Total Economic Impacts of UT System Institutions on Regional Economies
                                                                        Initial                     Output Impact                      Personal                    Employment
 Region/Institutions                                               Direct Spending              (Initial+Recirculated)              Income Impact*                   Impact*
 UT Medical Branch - Galveston
 Operations                                                          $405,433,520                     $658,614,196                   $255,936,118                      19,653
 Capital                                                               $64,215,615                    $101,810,193                     $36,412,991                         924
 Faculty/Staff Expenditures                                           $723,696,474                  $1,005,433,452                   $252,408,957                        6,883
 Student Expenditures                                                  $11,749,025                      $20,565,076                     $6,274,373                         212
 Subtotal                                                          $1,205,094,634                   $1,786,422,917                   $551,032,439                      27,672
 UT Health Science Center - Houston
 Operations                                                          $167,793,160                     $273,005,111                   $105,535,696                        7,899
 Capital                                                               $32,772,213                      $53,470,339                    $20,244,273                         494
 Faculty/Staff Expenditures                                           $327,643,618                    $455,196,174                   $114,274,685                        3,116
 Student Expenditures                                                  $17,990,318                      $27,729,818                     $9,046,301                         292
 Subtotal                                                            $546,199,309                     $809,401,442                   $249,100,955                      11,801
 UT M. D. Anderson Cancer Center
 Operations                                                          $569,192,540                     $912,907,159                   $354,508,517                      23,832
 Capital                                                             $461,664,411                     $798,874,691                   $334,470,005                        7,667
 Faculty/Staff Expenditures                                           $905,231,419                  $1,257,640,495                   $315,724,245                        8,610
 Student Expenditures                                                      $309,085                        $478,078                       $155,283                            5
 Subtotal                                                          $1,936,397,455                   $2,969,900,423                 $1,004,858,050                      40,114
 Total Impact, Houston-Galveston
 Operations                                                        $1,142,419,220                   $1,844,526,466                   $715,980,331                      51,384
 Capital                                                             $558,652,239                     $954,155,223                   $391,127,269                        9,085
 Faculty/Staff Expenditures                                        $1,956,571,511                   $2,718,270,121                   $682,407,887                      18,609
 Student Expenditures                                                  $30,048,428                      $48,772,972                    $15,475,957                         509
 Total                                                             $3,687,691,398                   $5,565,724,782                 $1,804,991,444                      79,587
 UT Pan American
 Operations                                                            $58,856,507                      $86,298,729                    $32,311,502                       4,811
 Capital                                                               $21,448,885                      $28,732,209                     $7,082,533                         360
 Faculty/Staff Expenditures                                            $76,978,970                      $93,735,046                    $19,028,770                         765
 Student Expenditures                                                  $30,271,285                      $42,022,924                    $13,731,738                         645
 Subtotal                                                            $187,555,647                     $250,788,908                     $72,154,543                       6,581
 Total Impact, McAllen-Edinburg-Pharr
 Operations                                                            $58,856,507                      $86,298,729                    $32,311,502                       4,811
 Capital                                                               $21,448,885                      $28,732,209                     $7,082,533                         360
 Faculty/Staff Expenditures                                            $76,978,970                      $93,735,046                    $19,028,770                         765
 Student Expenditures                                                  $30,271,285                      $42,022,924                    $13,731,738                         645
 Total                                                               $187,555,647                     $250,788,908                     $72,154,543                       6,581
 UT Permian Basin
 Operations                                                            $13,357,953                      $18,850,629                     $6,079,814                         967
 Capital                                                               $12,940,158                      $20,467,170                     $7,519,456                         261
 Faculty/Staff Expenditures                                            $14,557,196                      $18,096,262                     $3,731,089                         138
 Student Expenditures                                                  $10,558,969                      $14,531,408                     $4,317,939                         185
 Subtotal                                                              $51,414,276                      $71,945,468                    $21,648,298                       1,551
 Total Impact, Midland-Odessa
 Operations                                                            $13,357,953                      $18,850,629                     $6,079,814                         967
 Capital                                                               $12,940,158                      $20,467,170                     $7,519,456                         261
 Faculty/Staff Expenditures                                            $14,557,196                      $18,096,262                     $3,731,089                         138
 Student Expenditures                                                  $10,558,969                      $14,531,408                     $4,317,939                         185
 Total                                                                 $51,414,276                   $71,945,468                      $21,648,298                        1,551
 *Direct employment by the UT System institutions included in the operations impact. Employment includes full and part-time jobs. Personal income impact is included in the output
 impact.
A Study of the Economic Impact of                                                                                                                                                 Page 40
The University of Texas System
Appendix 4
Total Economic Impacts of UT System Institutions on Regional Economies

                                                                       Initial                     Output Impact                     Personal                      Employment
 Region/Institutions                                              Direct Spending              (Initial+Recirculated)             Income Impact*                     Impact*
 UT San Antonio
 Operations                                                             $70,159,177                  $113,949,681                    $42,289,054                        5,547
 Capital                                                                $96,086,636                  $162,120,301                    $59,670,958                        1,924
 Faculty/Staff Expenditures                                            $120,456,765                  $167,516,557                    $40,969,773                        1,379
 Student Expenditures                                                   $93,828,620                  $156,112,360                     $52,629,874                       2,012
 Subtotal                                                              $380,531,198                  $599,698,899                   $195,559,659                       10,862
 UT Health Science Center - San Antonio
 Operations                                                            $108,035,347                  $174,177,969                    $65,457,550                        7,536
 Capital                                                                $51,265,121                   $86,594,991                    $31,734,244                        1,262
 Faculty/Staff Expenditures                                            $282,503,651                  $392,871,551                    $96,085,181                        3,234
 Student Expenditures                                                   $16,296,850                   $26,277,562                      $8,584,119                          305
 Subtotal                                                              $458,100,969                  $679,922,073                   $201,861,094                       12,337
 Total Impact, San Antonio
 Operations                                                            $178,194,524                  $288,127,650                   $107,746,604                       13,083
 Capital                                                               $147,351,757                  $248,715,292                    $91,405,202                        3,186
 Faculty/Staff Expenditures                                            $402,960,416                  $560,388,108                   $137,054,954                        4,613
 Student Expenditures                                                  $110,125,470                  $182,389,922                     $61,213,993                       2,317
 Total                                                                 $838,632,167               $1,279,620,972                    $397,420,753                       23,199
 UT Tyler
 Operations                                                             $17,252,541                   $25,886,264                      $8,407,325                       1,361
 Capital                                                                $14,942,242                   $24,976,176                      $8,959,872                          300
 Faculty/Staff Expenditures                                             $23,923,550                   $31,600,645                      $7,127,584                          258
 Student Expenditures                                                   $24,189,131                   $36,251,913                     $11,989,426                          450
 Subtotal                                                               $80,307,464                  $118,714,998                    $36,484,207                        2,369
 UT Health Center - Tyler
 Operations                                                             $39,616,757                   $58,877,306                    $20,345,193                        2,244
 Capital                                                                $22,872,745                   $36,065,433                    $11,924,590                           579
 Faculty/Staff Expenditures                                             $64,358,873                   $85,011,709                    $19,174,549                           694
 Student Expenditures                                                               $0                            $0                             $0                           0
 Subtotal                                                              $126,848,375                  $179,954,448                    $51,444,332                        3,517
 Total Impact, Tyler-Longview-Marshall
 Operations                                                             $56,869,298                   $84,763,570                    $28,752,518                        3,605
 Capital                                                                $37,814,987                   $61,041,609                    $20,884,462                           879
 Faculty/Staff Expenditures                                             $88,282,423                  $116,612,354                    $26,302,133                           952
 Student Expenditures                                                   $24,189,131                   $36,251,913                     $11,989,426                          450
 Total                                                                 $207,155,839                  $298,669,446                    $87,928,539                        5,886
 Total Impact on Regional Economies
 Operations                                                        $2,333,014,996                $3,670,392,985                 $1,399,915,425                       137,422
 Capital                                                           $1,211,646,611                $1,968,822,882                   $736,560,130                        20,582
 Faculty/Staff Expenditures                                        $4,184,413,396                $5,702,512,939                 $1,400,120,315                        40,483
 Student Expenditures                                                $974,854,781                $1,466,578,422                   $475,795,289                        17,228
 Total                                                             $8,704,929,784           $12,808,307,228                    $4,012,391,158                        215,715
 *Direct employment by the UT System institutions included in the operations impact. Employment includes full and part-time jobs.Personal income impact is included in the output
 impact.




A Study of the Economic Impact of                                                                                                                                                 Page 41
The University of Texas System
Acknowledgments




The Institute for Economic Development at The University of Texas at San Antonio prepared this report upon the request of The
University of Texas System Administration.

The research team included Institute staff, faculty and student researchers, supplemented with an outside team of expert advisors
to review study methodology, findings and interpretations. Numerous individuals and offices in the UT System Administration
supplied standard Annual Financial Reports for FY2004, enrollment and accountability data.

Research Team members include: Robert McKinley, Michael E. Cline, Gary Bridges, James Ford, Jennifer T. Martinez, Jessica
Bybee-Dziedzic and Peter C. Morales.

Expert Advisors Team members include: Ray Perryman, Lynda de la Viña, Steve Murdock, Kerry Kennedy, Joseph Stafford, Jude
Valdez and Albert Carrisalez.

University of Texas Administration Project Team members and data sources include: Sid Sanders, Jerry Vernon, Geri Malandra,
Randa Safady, Ashley Smith, Marsha Kelman, Melissa Segrest, Rich Edwards, Patrick Francis, Dana Malone, Debbie Frederick, Kim
Dubnansky, Mark Permenter, David Gabler and Elton Smith.

Special thanks to: Shirley Lewis, Irene Mireles, Linda Hernandez, Deidre Pattillo and Linda Martinez.




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                                                                                                       San Antonio, Texas 78207

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A Study of the Economic Impact of                                                                                         Page 42
The University of Texas System

				
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